The PCAOB Has the Authority to Do All of the Following

question 54

Multiple Choice

The PCAOB has the authority to do all of the following except:

• A)perform peer reviews on public accounting firms
• B)establish quality control standards for auditors of public companies
• C)take responsibility for an organization's financial statements
• D)set audit standards

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Definitions:

Compound Journal Entry

A journal entry that affects more than two accounts.

Fiscal Year

A one-year period chosen by a business for financial reporting and taxation purposes, which may not coincide with the calendar year.

Accounting Period

A specific time period for which financial information is reported, commonly a year or a quarter.

Calendar Year

A period of time that starts on January 1 and ends on December 31, used for accounting and official purposes.