Shayna Kirschfield audits a company that has market capitalization of $20,000,000. There is also a requirement that the partners in her firm be rotated every seven years and the audit committee must pre-approve all servicprovided to the client by Shayna's firm. What kind of client is this?

Question

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The fact that the company has a market capitalization of $20,000,000 indicates that it is likely a reporting issuer, which is a company that issues securities to the public and is required to file financial statements with a securities regulator. The requirement for partner rotation and pre-approval of services by the audit committee also suggest a higher level of regulatory oversight, which is typical for reporting issuers.

Shayna Kirschfield Audits a Company That Has Market Capitalization of $20,000,000