Firm A performs audits of 60 public entities,while firm B performs audits of 120 public entities.How often must each firm undergo a PCAOB inspection?

Question

Quizplus · Accepted Answer

According to the PCAOB inspection frequency rules, firms that audit more than 100 public entities are inspected annually and firms that audit fewer than 100 public entities are inspected at least every three years. Therefore, firm B will be inspected annually because it audits 120 public entities. Firm A, on the other hand, will be inspected at least every three years because it audits only 60 public entities. Thus, the correct choice is C.

Firm a Performs Audits of 60 Public Entities,while Firm B