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

Question

Quizplus · Accepted Answer

The requirement for a client to file an annual report with the SEC including audited financial statements is not one of the criteria for a CPA firm to do both bookkeeping and auditing for the same client. The criteria are that the client accepts responsibility for the financial statements, the CPA does not assume the role of employee or manager, and applicable auditing standards are followed.

Interpretations to the Rules of Conduct Permit a CPA Firm