Which of the Following Is True with Respect to the PCAOB

question 63

Multiple Choice

Which of the following is true with respect to the PCAOB inspection process?

• A)All firms performing audits of public entities are inspected every year.
• B)PCAOB inspections are conducted by partners of other CPA firms.
• C)PCAOB inspection teams review a sample of audit engagements conducted by the firm as well as the firm's system of quality control.
• D)Deficiencies from sample audit engagements reviewed by the inspection team and deficiencies in the firm's system of quality control are publicly disclosed on the PCAOB's website.

---

Definitions:

Costing Methodology

A systematic approach used in accounting to determine the cost associated with a product or service, for the purpose of financial reporting, decision making, or controlling.

Terms And Conditions

The rules and guidelines that govern an agreement or contract, setting out the rights and obligations of each party.

Bad Faith Bargaining

Negotiating with no real intention to reach a settlement or agreement, characterized by deceptive or dishonest practices.

Bargaining Environment

The context in which collective bargaining occurs, including economic conditions, labor laws, and the balance of power between employers and unions.