Firm a Performs Audits of 60 Public Entities,while Firm B

question 21

Multiple Choice

Firm A performs audits of 60 public entities,while firm B performs audits of 120 public entities.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:

Spot Exchange Rate

The current market price for exchanging one currency for another, used for immediate currency transactions.

Exchange Rate

The value of one currency for the purpose of conversion to another.

Japanese Automobile

A car manufactured by a company based in Japan, known for reliability, efficiency, and advanced technology.

Canadian Dollars

The currency of Canada, represented by the symbol CAD, and used throughout the country for financial transactions.