Which of the Following Is Not True for Audit Firms

question 53

Multiple Choice

Which of the following is not true for audit firms who audit publicly traded companies?

• A)They must undergo a PCAOB inspection on an annual basis if they audit more than 100 issuers.
• B)They must have an AICPA peer review on all audit clients.
• C)They must have an AICPA peer review on all non-publicly traded clients.
• D)The audit firm can choose which CPA firm they wish to conduct their AICPA peer review.

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Definitions:

Citrus Fruit

A category of fruits that includes oranges, lemons, limes, and grapefruits, known for their vibrant flavors and high vitamin C content.

Retailer Cooperative

A group of independent retailers that band together to set up a jointly owned, central wholesale operation that also conducts joint merchandising and promotion.

Consumer Cooperative

A cooperative business owned by its customers for their mutual benefit, where profits are returned to the members according to their use of the cooperative, not according to the capital invested.

Franchise

A business model where a company allows an individual or other company to operate a branch of their business under their brand and guidelines.