The Use of Another CPA Firm by an Audit Firm

question 94

Multiple Choice

The use of another CPA firm by an audit firm to perform part of the engagement on a client's subsidiary will require the audit firm to

• A)merge with the other CPA firm.
• B)perform a peer review on the other CPA firm.
• C)ensure the independence of the other CPA firm of the client.
• D)list the other firm in the footnotes to the client's financial statements.

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Definitions:

Detect Fraud

The process of identifying and preventing deceptive actions typically involving the intentional misrepresentation of information for personal gain.

Prevent Fraud

Measures and strategies put in place to detect, prevent, and minimize fraudulent activities.

Intelligent Agents

Software entities that perform tasks autonomously on behalf of users, based on certain rules or learning algorithms.

Intelligent Agents

Software entities that perform tasks autonomously, based on pre-set conditions or adaptive learning.