Interpretations to the Rules of Conduct permit a CPA firm to do both bookkeeping and auditing for the same private company client if three criteria are met. Which of the following is not one of those criteria?

Question

Quizplus · Accepted Answer

The requirement for the client to file an annual report with the SEC is not one of the criteria listed in Interpretations to the Rules of Conduct for a CPA firm to do both bookkeeping and auditing for the same private company client. The three criteria are that the client accepts full responsibility for the financial statements, the CPA does not assume the role of employee or manager, and the CPA must follow applicable auditing standards.

Interpretations to the Rules of Conduct Permit a CPA Firm