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 PCAOB rules, firms that audit fewer than 100 public entities must be inspected at least once every three years, while firms that audit 100 or more public entities must be inspected annually. Therefore, firm A will be inspected every three years, while firm B will be inspected annually.

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