The quarterly reports submitted to the SEC by the client
A) have to be audited, and the CPA firm must be identified.
B) do not have to be audited, but the CPA firm which does the annual audit must be identified.
C) have to be audited, but the CPA firm does not have to be identified.
D) do not have to be audited, but the CPA firm which does the annual audit must review the quarterly statements before they are submitted to the SEC.

Question

Quizplus · Accepted Answer

Quarterly reports submitted to the SEC do not require an audit, but they must be reviewed by the CPA firm that conducts the annual audit. This review is less extensive than an audit but ensures that the financial statements do not contain any material misstatements.

The Quarterly Reports Submitted to the SEC by the Client