Firms providing audit services can be incorporated provided:
A) all partners are listed as directors.
B) they are not large partnerships.
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 provision of appropriate and adequate professional indemnity insurance is a requirement for incorporation of firms providing audit services. The other choices are incorrect as there is no requirement for all partners to be listed as directors or for the audit firm to be below a certain size or have a certain income level.

Firms Providing Audit Services Can Be Incorporated Provided