Which of the following is an accurate statement?
A) Auditing standards detail the requirements that a CPA firm must follow when it is requested to provide an opinion on the application of accounting principles for a client of another CPA firm.
B) SEC rules prohibit ownership in audit clients by those persons who can influence the audit.
C) PCAOB rules require a CPA firm, before its selection as the company's auditor, to document all relationships between the firm and the company.
D) All of the above are accurate statements.

Question

Quizplus · Accepted Answer

All three statements are accurate. A) is describing the generally accepted auditing standards and their application to client acceptance and continuation issues. B) is referring to the independence rules established by the SEC, which prohibit certain financial relationships between an auditor and their client. C) is describing the requirements set forth by the PCAOB for auditor independence documentation and considerations prior to being selected as the auditor for a public company.

Which of the Following Is an Accurate Statement