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.

---

Definitions:

Preventative Maintenance

Regular and routine maintenance carried out on equipment and facilities to prevent unexpected failures or breakdowns.

Work Flow

The sequence of industrial, administrative, or other processes through which a piece of work passes from initiation to completion.

Proofread

The process of reviewing text to correct grammatical, typographical, or spelling mistakes before the final version is presented or published.

Résumé

A document providing a summary of one's experience, education, skills, and achievements, typically used for job applications.