A. Distinguish between audit risk and audit failure.

B. Discuss each of the three broad categories (types) of operational audits.

C. List and briefly describe examples of risk factors for each condition of fraud for misappropriation of assets.

D. Assess the impact Enron has had on the auditing and accounting profession. Evaluate the industry's response to date. Were the changes implemented enough to restore investor confidence and the public's opinion of the auditing and accounting profession?

E. Distinguish between management's responsibility and the auditor's responsibility for the financial statements under audit.

F. Discuss how each of the following influences the persuasiveness of evidence.

1. Relevance

2. Independence of provider

3. Effectiveness of client's internal controls

4. Auditor's direct knowledge

5. Degree of objectivity