Which of the following is not a characteristic of a small local CPA firm?
A) Most small firms have fewer than 25 professionals.
B) Small firms perform audits on small and not-for-profit businesses.
C) Tax services are more important than auditing services to the small firm.
D) Small firms are prohibited by the SEC from auditing publicly traded companies.

Question

Quizplus · Accepted Answer

This statement is not a characteristic of a small local CPA firm as SEC prohibits only non-registered firms from auditing publicly traded companies. Small local CPA firms that are registered with the PCAOB can audit publicly traded companies, although it is less common due to the firms' limited resources and expertise.

Which of the Following Is Not a Characteristic of a Small