In Proposed PCAOB Rule 4012, "Inspection of Foreign Registered Public

question 9

Multiple Choice

In proposed PCAOB Rule 4012, "Inspection of Foreign Registered Public Accounting Firms" issued for comment in December 2007, which of the following is NOT one of the broad principles upon which the board may place full reliance on the inspection program of qualified non-U.S. auditor oversight entities?

• A) Transparency of the oversight system
• B) Adequacy and integrity of the oversight system
• C) Rigidity of professional standards mandated by the oversight system
• D) Independence of the oversight system's source of funding

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Definitions:

Fluid intelligence

The ability to reason and solve new problems independently of previously acquired knowledge.

Retrospective memory

The process of recalling past events, information, or experiences from one's memory.

Working memories

The part of short-term memory that is concerned with immediate conscious perceptual and linguistic processing.

Explicit memory

The conscious, intentional recollection of factual information, previous experiences, and concepts.