A Periodic Review of an Audit Firm's System of Quality

question 22

Multiple Choice

A periodic review of an audit firm's system of quality control by the PCAOB is referred to as a(n) :

• A)Inspection.
• B)Peer review.
• C)Principles review.
• D)Quality review.

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Definitions:

Dividends

Payments made by a corporation to its shareholders, usually from profits.

Equity Method

An accounting technique used by companies to assess the profits earned by their investments in other companies, where the investment is recorded initially at cost and adjusted thereafter for the post-acquisition change in the investor's share of the investee's net assets.

Gross Profit

The profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services.

Dividends

Cash distributions made to shareholders by a corporation, typically from the company's earnings as profit.