Which of the following is true with respect to PCAOB inspections of accounting firms?
A) All firms performing audits of public companies are required to have annual inspections conducted by the PCAOB.
B) PCAOB inspections review a sample of audits conducted by firms as well as the firm's systems of quality control.
C) All results of PCAOB inspections are made available to the public following the inspection.
D) Firms performing audits of 100 or fewer public entities may elect to have a peer review conducted through the AICPA in lieu of a PCAOB inspection.

Question

Quizplus · Accepted Answer

PCAOB inspections review both a sample of audits conducted by firms and the firm's system of quality control. Choice A is incorrect because not all firms performing audits of public companies are required to have annual inspections by the PCAOB; only registered firms are required to do so. Choice C is incorrect because only summary information about inspection results is made available to the public, while non-public portions are kept confidential. Choice D is incorrect because only firms with 100 or fewer public companies as clients may elect to have a peer review conducted by the AICPA, and only if certain criteria are met.

Which of the Following Is True with Respect to PCAOB