Firms providing audit services can be incorporated provided:
A) they are not large partnerships.
B) all partners are listed as directors.
C) they obtain appropriate and adequate professional indemnity insurance.
D) the total income of the audit firm is above $2M.

Question

Quizplus · Accepted Answer

The other options listed are incorrect. A firm providing audit services can be a large partnership and there is no requirement for all partners to be listed as directors. The total income of the audit firm is not relevant in determining whether or not the firm can be incorporated. However, obtaining appropriate and adequate professional indemnity insurance is a requirement for incorporating a firm providing audit services.

Firms Providing Audit Services Can Be Incorporated Provided