Williams & Co., a U.S. audit firm, is to have a 'peer review.' The peer review can be performed by:
A) another audit firm selected by Williams & Co.
B) a review team selected by the state society.
C) internal auditors.
D) either A or B.

Question

Quizplus · Accepted Answer

Peer reviews in the context of audit firms in the U.S. can be performed either by another audit firm selected by the firm undergoing the review (Williams & Co. in this case) or by a review team selected by the state society or a similar professional body. This ensures that the review is conducted impartially and meets the required professional standards. Internal auditors are not typically involved in conducting peer reviews for audit firms, as these reviews are meant to assess the firm's compliance with professional standards and are best conducted by external parties.