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Interpretations to theRules of Conductpermit a CPA firm to do both bookkeeping and auditing for the ...

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Interpretations to theRules of Conductpermit a CPA firm to do both bookkeeping and auditing for the ...

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

▸ The client must accept full responsibility for the financial statements.

▸ The client is required to file an annual report, including audited financial statements, with the Securities and Exchange Commission.

▸ The CPA must not assume the role of employee or of manager.

▸ The CPA must follow applicable auditing standards.

Textbook

Auditing and Assurance Services

Edition: 17^th

Authors: Arens, Elder, Beasley, Hogan

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