An audit firm should immediately decline to propose on a public company's audit if the company's CFO was recently a partner in the audit firm.

Question

Quizplus · Accepted Answer

According to the SEC rules and regulations, an audit firm should not propose on a public company's audit if the company's CFO was a partner in the audit firm during the one-year period preceding the audit. This is to ensure independence and avoid any potential conflicts of interest.

An Audit Firm Should Immediately Decline to Propose on a Public