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:

Tonnage

A measurement of weight or volume used to describe the size or capacity of ships and the cargo they carry.

Property Rights

The legal rights to use, control, and benefit from real estate or intellectual property, including the right to sell or lease such assets.

Open Ocean

The vast, deep areas of the sea that are not close to land, characterized by unique ecosystems and a wide variety of marine life.

ITQs

Individual Transferable Quotas, a regulatory tool designed to control the total allowable catches in fisheries by allocating specific quotas to fishers or companies.