Firm a Performs Audits of 60 Issuers, While Firm B

question 15

Multiple Choice

Firm A performs audits of 60 issuers, while firm B performs audits of 120 issuers. How often must each firm undergo a PCAOB inspection?

• A)Both firm A and firm B will be inspected every other year.
• B)Firm A will be inspected annually and firm B will be inspected every three years.
• C)Firm A will be inspected every three years and firm B will be inspected annually.
• D)Both firm A and firm B will be inspected annually.

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Definitions:

Parent-Teacher Association

An organization composed of parents and teachers that aims to facilitate parental participation in schools and improve the educational experience.

Theater Crowd

A group of people gathered to watch a live performance in a theatre setting.

Emotional Ties

Emotional ties are deep connections between individuals based on feelings of love, friendship, or other emotional bonds.

Minimal Group Paradigm

Placing people into arbitrarily defined groups that have no important meaning is sufficient to trigger in-group and out-group processes and produce intergroup discrimination.