Chapter 02

The CPA Profession
Chapter 2
2010 Prentice Hall Business Publishing, Auditing 13/e, Arens/Beasley/Elder
2-1
Learning Objective 1
Describe the nature of CPA firms,

what they do, and their structure.
2010
2006 Prentice Hall Business Publishing, Auditing 13/e,
11/e, Arens/Beasley/Elder
2-2
Certified Public Accounting Firms

The legal right to perform audits is granted to
CPA firms by regulations stated by applied laws.
CPA firms also provide many other services to

their clients, such as tax and consulting services.
2010
2-3

The four largest CPA firms in the United States
are called the Big Four international CPA firms.
These four firms have offices in most major

cities in the United States and in many
cities throughout the world.
2010
2-4

Big Four international firms
National firms
Regional and large local firms
Small local firms
2010
2-5

Big Four International Firms:
The four largest CPA firms in the United
States
are
called
the
Big
Four
international CPA firms.

These four firms have offices throughout
the
United
States
and
throughout
the
world.
The Big Four firms audit nearly all of the
largest
companies
both
in
the
United
States and worldwide and many smaller

companies as well.
2010
2-6

National Firms:
Three CPA firms in the United States are
called national firms because they have

office in most major cities.
These
firms are large but

smaller than the Big Four.
considerably
The national firms perform the same services
as the Big Four firms and compete directly

with them for clients.
Each national firm is affiliated with firms in
other countries and therefore

international
capability.
2010
2006 Prentice
Hall Business Publishing, Auditing
13/e,
has
an
2-7

Regional and Large Local Firms:
There
are less than 200 CPA firms with

professional staffs of more than 100 people.
Some have only one office and several clients
primarily within commuting distance. Others
have several offices in a state or region and serve
a larger radius of clients.
Regional and large local firms compete for clients
with other CPA firms, including National and Big

Four firms.
Many of the regional and large local firms are
affiliated with associations of CPA firms to share

2010
2006 Prentice
Hall Business Publishing,
Auditing 13/e,
11/e,
Arens/Beasley/Elder
resources
for
such
things
as
technical 2 - 8

Small Local Firms:
More than 95 percent of all CPA firms have
fewer than 25 professionals in a singleoffice firm.

They perform audits and related services
primarily for smaller businesses and notfor-profit entitles, although some have one
or two clients with public ownership.
Many small local firms do not perform
audits and primarily provide accounting

and tax services to their clients.
2010
2-9
Activities of CPA Firms

As
discussed in chapter 1, CPA firms

provide audit services as well as other
attestation and assurance service.
Additional services commonly provided by
CPA
firms
include
accounting
and
bookkeeping services, tax services, and
management consulting services.
CPA
firms continue to develop new

products and services, such as financial
planning, business valuation, forensic
accounting, information technology, and
2 - 10
advisory
services.
2010
2006 Prentice
Auditing 13/e,
Accounting and bookkeeping services

Tax services
Management consulting services
2010
2 - 11

Accounting and bookkeeping services
Many small clients with limited accounting staff
rely on CPA firms to prepare their financial

statements. Some small clients lack the
personnel or expertise to use accounting
software to maintain their own accounting
records.
Thus, CPA firms performs a variety of accounting
and bookkeeping services to meet the needs of

these clients.
In many cases, in which the financial statements
are to be given to a third party, a review or even

an audit is also performed. When neither of these
2010
2006 Prentice
Publishing, Auditing
is Hall Business
done,
the 13/e,
financial
statements
are2 - 12

Tax Services:
CPA firms prepare corporate and individual
tax returns for both audit and nonaudit

clients.
Almost
every
CPA
firm
performs
tax
services, which may include estate tax, tax

planning and other aspects of tax services.
For many small firms, such services are far
more important to there practice than

auditing as most of their revenue may be
generated from tax services.
2010
2 - 13

Management Consulting Services:
Most CPA firms provide certain services that
enable their clients to operate their businesses

more effectively.
These services are called management consulting
or management advisory services.

These services range from simple suggestions for
improving the clients accounting system to

advice
in
risk
management,
information
technology and e-commerce system design,
mergers and acquisitions due diligence, business
valuations, and others.
Many large CPA firms have departments involved
exclusively in management consulting services2 - 14
2010
Structure of CPA Firms

Three main factors influence the organizational
structure of all firms:
1. The need for independence from clients
2. The importance of a structure to encourage
competence
3. The increased litigation risk faced by auditors
2010
2 - 15
Structure of CPA Firms

The need for independence from clients:
Independence permits auditors to remain

unbiased in drawing conclusions about the
financial statements.
The
importance of a
encourage competence:
structure
to
Competence permits auditors to conduct

audits and perform other services efficiently
and effectively.
The increased litigation risk faced by
auditors:
2010
2 - 16
Organizational Structure
Proprietorship
Professional corporation
General partnership
Limited liability company
General corporation
Limited liability partnership
2010
2 - 17
Proprietorship:
Only firms with one owner can operate in this
form. Traditionally, all one-owner firms were
organized as proprietorship, but in recent
years, most of them have changed to
organizational forms with more limited liability
because of litigation risk.
General Partnership:
This form of organization is the same as a
proprietorship, except that it applies to
multiple owners. This organizational structure
has also become less popular as other forms of
ownership
some legal liability2 - 18
2010
2006 Prentice
Hall Business Publishing,that
Auditing 13/e,
11/e, offer
Arens/Beasley/Elder
General Corporation:
The advantage of a corporation is that
shareholders are liable only to the extent of their
investment in the corporation. Most CPA firms do
not organize as general corporations because
they are prohibited by law from doing so in most
states.
Professional Corporation (PC):

PC provides professional services and is owned
by one or more shareholders. PC laws in some
states offer personal liability protection similar to
that of
general corporations, whereas, the
protection in other states is minimal. This
variation
makes
it Arens/Beasley/Elder
difficult for a CPA firm with2 - 19
2010
2006 Prentice
Auditing 13/e,
11/e,
Limited Liability Company (LLC):
A limited liability company (LLC) combines

the most favorable attributes of a general
corporation and a general partnership.
An LLC is typically structured and taxed
like a general partnership, but its owners
have limited personal liability similar to
that of a general corporation.
All of the states have LLC laws, and most
also allow accounting firms to operate as
LLCs.
2 - 20
2010
Limited Liability Partnership:
A limited liability partnership (LLP) is owned by
one or more partners. it is structured and taxed

like a general partnership, but the personal
liability protection of an LLP is less than that of a
general corporation or an LLC.
Partners of an LLP are
personally liable for the

partnerships debts and obligations, their own
acts, and acts of others under their supervision.
Partners are NOT personally liable for liabilities
arising from negligent acts of other partners and

employees not under their supervision. It is not
surprising
that
all13/e,
ofArens/Beasley/Elder
the Big Four firms and many2 - 21
2010
2006 Prentice
Auditing
11/e,
Hierarchy of A typical CPA Firm

The organizational hierarchy in a typical CPA firm
includes partners or shareholders,

managers,
supervisors, seniors or in-charge auditors, and
assistants.
A new employee usually starts as an assistant
and spends 2 or 3 years in each classification

before achieving partner status.
The titles of the positions vary from firm to firm,
but the structure is similar in all.

When we refer in this text to the auditor, we
mean the person performing some aspect of an

audit. lt is common to have one or more auditors
2 - 22
from
each
level
on
larger
engagements.
2010
2006 Prentice
Hall Business
Publishing,
Auditing
13/e,
11/e,
Arens/Beasley/Elder
Staff
level
Staff
Assistan
ce
Average
Experience
0-2 year
Senior or
incharge
auditor
2-5 years
Manager
5-10 years
Partner
10+ years
Typical responsibilities
Performs most of the detailed audit
work
Coordinates
the audit
supervising
work.
and is responsible for

field work, including
and reviewing staff
Helps the in-charge plan and

manage the audit, reviews the incharges
work,
and
manages
relations
with
the
client.
A
manager may be responsible for
more than one engagement at the
same time.
Reviews the overall audit work and

is involved in significant audit
2 - 23
2010
11/e,
Arens/Beasley/Elder
decisions.
Understand the role of the
Public Company Accounting
Oversight Board and the effects
of the Sarbanes-Oxley Act on
the CPA profession.
2010
2 - 24
Sarbanes-Oxley Act
This Act is considered by many observers to
be the most important legislation affecting
the auditing profession since the 1930s.
The provisions of the Act apply to publicly
held companies and their audit firms.
2010
2 - 25
Sarbanes-Oxley Act
SEC
PCAOB
(Public Company Accounting
Oversight Board)
2010
2 - 26
Sarbanes-Oxley Act
The Sarbanes-Oxley Act established the Public
Company Accounting Oversight Board (PCAOB),

appointed and overseen by the SEC.
The PCAOB provides oversight for auditors of
public companies, established auditing and

equality control standards for public company
audits, and performs inspection of the quality
controls at audit firms performing those audit.
The
PCAOB requires annual inspection of

accounting firms that audit more than 100
issuers and inspection of other registered firms
at least once every three years.
Any violations could result in disciplinary action
by PCAOB and be reported to the SEC and state2 - 27
2010
Summarize the role of the
Securities and Exchange
Commission in accounting
and auditing.
2010
2 - 28

Commission
The overall purpose of the Securities and
Exchange Commission (SEC) is to assist in
providing investors with reliable information
Upon which to make investment decisions.
2010
2 - 29

Commission
Forms S-1 to S-16
Form 10-K
Form 8-K
Form 10-Q
2010
2 - 30
Describe the key functions

performed by the AICPA.
2010
2 - 31
AMERICAN INSTITUTE OF CERTIFIED

PUBLIC ACCOUNTANTS (AICPA)
The AICPA sets professional requirements
for CPAs, conducts research, and publishes
materials on many different subjects related
to accounting, auditing, attestation and
assurance services, management
consulting services, and taxes.
2010
2 - 32
AICPA
CPAs are licensed by the states in which they
practice, but a significant influence on CPAs is

exerted
by
their
national
professional
organization, the American Institute of Certified

Public Accountants (AICPA).
Membership in the AICPA is restricted to CPAs,
but
not
all
members
are
practicing
as
independent auditors.
Many members formerly worked for CPA firms but
are currently working in government, industry,

and education.
AICPA membership is voluntary, so not all CPAs
2010
2 - 33
Establishing Standards
and Rules
The AICPA is empowered to set standards
(guidelines) and rules that all members
and other practicing CPAs must follow.
2010
2 - 34
Establishing Standards
and Rules
1. Auditing standards
2. Compilation and review standards
3. Other attestation standards
4. Consulting standards
5. Code of Professional Conduct
2010
2 - 35
Establishing Standards and Rules

1. Auditing standards:
The
Auditing
Standards
Board
(ASB)
is
responsible for issuing pronouncements on
auditing matters for all entities other than
publicly traded companies. ASB pronouncements
are called Statements on Auditing Standards
(SASs).
2. Other attestation Standards:
Statements
on
Standards
Engagements
provide
a
development
of
standards
engagements.
2010
for
Attestation
framework
for
for
attestation
2 - 36
Detailed standards have been developed for
Establishing Standards and Rules

3. Compilation and Review Standards:
The Accounting and Review Services Committee is

responsible for issuing pronouncements of the
CPAs responsibilities when a CPA is associated with
financial statements of privately owned companies
that are not audited. They are called Statements
on Standards for Accounting and Review Services
(SSARS), and they provide guidance for performing

compilation and review services.
In a compilation service, the auditor helps the

client
prepare
financial
statements
without
providing any assurance.
In a review service, the auditor perform inquiry and

2010
2006 Prentice
Auditing 13/e,
analytical
procedures
that provide a reasonable2 - 37
Other AICPA Functions

Writes and grades the CPA examination
Supports research by its own staff and
provides grants to others
Publishes a variety of materials.
Provides seminars and education in a
variety of subject matters
2010
2 - 38
Vision for the Future

The AICPA has established the CPA Vision Project
to provide a core purpose and a vision for the CPA
profession in the year 2011 and beyond.
The core purpose of the CPA Vision Project is:
CPAsmaking sense of a changing
and complex world.
2010
2 - 39
Vision for the Future

1. Continuing education and life-long learning
2. Competence
3. Integrity
4. Attuned to broad business issues
5. Objectivity
2010
2 - 40
Discuss the role of international

auditing standards.
2010
2 - 41
International Standards
on Auditing
International Standards on Auditing (ISAs) are
issued by the International Auditing and
Assurance Standards Board (IAASB) of the
International Federation of Accountants (IFAC).
2010
2 - 42
International Standards
on Auditing
IFAC is the worldwide organization for the accountancy
profession, with 157 member organization in 123
countries representing more than 2.5 million
accountants throughout the world.
The IAASB works to improve the uniformity of auditing
practices and related services throughout the world by
issuing pronouncements on a variety of audit and
attest functions and by promoting their acceptance
worldwide
2010
2 - 43
IAASB
The
International
Auditing
and
Assurance
Standards Board (IAASB) is an independent

standard-setting body that serves the public
interest by setting high-quality international
standards for auditing, quality control, review,
other assurance, and related services, and by
facilitating the convergence of international
and national standards.
In doing so, the IAASB enhances the quality
and uniformity of practice throughout the

world and strengthens public confidence in the
global auditing and assurance profession
2010
2 - 44
International Standers on
Auditing standers are general guidelines to aid
Auditing (ISAs)
auditors
in
fulfilling
their
professional
auditors
in
fulfilling
responsibilities
in
their
the
audit
professional
of
financial
statements.
They
include
qualities
consideration
such
independence,
as
reporting
of
professional
competence
and
requirements,
and
evidence.
ISAs do not override a countys regulation
governing the audit of financial statements, as

each
countrys
own
govern audit practices.
regulations
generally
These may be either2 - 45
2010
Use generally accepted

auditing standards as a
basis for further study.
2010
2 - 46
Generally Accepted Auditing

Standards (GAAS)
General
Standards
Field Work
Performance
of the Audit
Standers of
Reporting
Adequate training and proficiency

Independence in mental attitude
Due professional care
Proper planning and supervision

Sufficient understanding of the entity, its environment,
and its internal control
Sufficient appropriate evidence
Whether statements were prepared in accordance with GAAP
Circumstances when GAAP not consistently followed

Adequacy of informative disclosures
Expression of opinion on financial statements
2010
2 - 47
General Standards
1. The audit is to be performed by a person or
persons having adequate technical training
and proficiency as an auditor.
2. In all matters relating to the assignment,
an independence in mental attitude is to
be maintained by the auditor or auditors.
2010
2 - 48
General Standards
3. Due professional care is to be exercised
in the planning and performance of the
audit and the preparation of the report.
2010
2 - 49
General Standards
Adequate Technical Training and Proficiency:
The
first
general
standard
is
normally
interpreted as requiring the auditor to have

formal education in auditing and accounting,
adequate practical experience for work being
preformed,
and
continuing
professional
education.
Recent court cases clearly demonstrate that
auditors must be technically qualifies and

experienced in those industries in which their
audit client are engaged.
In
any
case
in
which
2010
the
CPA
or
their2 - 50
General Standards
Independence in mental attitude:
The
auditor must maintain independent in

mental attitude in all matters relating to the
audit, so, the competence of those performing
the audit is of little value if they are biased in
the accumulation and evaluation of evidence.
Auditors strive to maintain a high level of
independence to keep the confidence of users

relying on their report.
CPA
firms are required to follow several

practices to increase the likelihood of
independence of all personnel.
Such auditors are paid fees by the company,2 - 51
2010
General Standards
Due professional care:
The third general standard involves due care in
the performance of all aspects of auditing.

Simply stated, this means that auditors are
professionals responsible for fulfilling their
duties diligently and carefully. Due care
includes consideration of completeness of the
audit documentation, the sufficient of the audit
evidence, and appropriateness of the audit
report.
As
professional,
auditors
must
negligence and bad faith, but the auditor
expected
to Auditing
make
perfect judgments in
2010
2006 Prentice
13/e,
avoid
is not
every2 - 52
Standards of Field Work

1. The work is to be adequately planned
and assistants, if any, are to be
properly supervised.
2. A sufficient understanding of internal
control is to be obtained to plan the audit
and to determine the nature, timing, and
extent of tests to be performed.
2010
2 - 53

3. Sufficient competent evidential matter is to
be obtained through inspection, observation,
inquiries, and confirmations to afford a
reasonable basis for an opinion regarding
the financial statements under audit.
2010
2 - 54

Proper planning and supervision:
The first standard required that the
audit be sufficiently planned to ensure

an
adequate
audit
and
proper
supervision of assistance.
Supervision is essential in auditing
because a considerable portion of the

field work is done by less experienced
staff members.
2010
2 - 55

Sufficient understanding of
the entity, its

environment, and its internal control:
To adequately perform an audit, the auditor
must have an understanding of the clients

business and industry. This understanding
helps the auditor identify significant client
business risk and the risk of significant
misstatements in the financial statements.
One of the most widely accepted concept in
the theory and practice of auditing is the

importance of the client system of internal
control for mitigation client business risk,
2010
safeguarding
assets
and
records,
and2 - 56

Sufficient understanding of
environment,
(Continue)
and
its
the entity, its

internal
control:
If the auditor is convinced that the client
has an excellent system of internal control,

one that includes adequate internal control
for providing reliable data, the amount of
audit evidence to be accumulated can be
significantly less than when the internal
control are not adequate.
In some instance, internal control may be
so inadequate as to preclude conduction as2 - 57
2010

Sufficient appropriate evidence:
Decisions about how much and what
types of evidence to accumulate for a

given set of circumstances require
professional judgment.
The
auditor must obtain sufficient

appropriate
audit
evidence
by
performing audit procedures to afford
a reasonable basis for an opinion
regarding the financial statements
2010
2 - 58
Standards of Reporting
1. The report shall state whether the financial
statements are presented in accordance with
generally accepted accounting principles.
2. The report shall identify those circumstances
in which such principles have not been
consistently observed in the current period
in relation to the preceding period.
2010
2 - 59
Standards of Reporting
3. Informative disclosures in the financial
statements are to be regarded as reasonably
adequate unless otherwise stated in the report.
4. The report shall contain an expression of
opinion regarding the financial statements,
taken as a whole.
2010
2 - 60
Summary of
General Standards
Generally Accepted Auditing Standards
General
Field Work
Reporting
1. Adequate training
and proficiency
2. Independence in
mental attitude
3. Due professional
care
1. Proper planning
and supervision
2. Internal control
understanding
3. Sufficient
competent
evidence
1. Statements prepared in
accordance with GAAP
2. Circumstances when
GAAP not followed
3. Adequacy of disclosures
4. Expression of opinion
on financial statements
2010
2 - 61
Relationship Between GAAS and

PCAOB Auditing Standards
The term generally accepted auditing standards
is no longer used for public company audits.
The term GAAS continues to be used for audits
of private companies.
Public company audits refer to PCAOB
auditing standards.
2010
2 - 62
Statements on Auditing Standards

The 10 generally accepted auditing standards
are too general to provide meaningful guidance.
SASs interpret the 10 generally accepted
auditing standards and are the most
Authoritative references available to auditors.
2010
2 - 63
Identify quality control
standards and practices
within the accounting
profession.
2010
2 - 64
Quality Control
Quality control comprises the methods used to
ensure that the CPA firm meets its professional

responsibilities to client and others.
These methods include the organizational structure
of the CPA firm and the procedures the audit firm

establishes
For example, CPA firm might have an organizational
structure that ensures the technical review of every

engagement by a partner who has expertise in the
clients industry.
Auditing
standards require each CPA firm to

establish quality control policies and procedures
that help it meet those standards consistently on
every engagement.
2010
2 - 65
Quality Control
The
AICPA has not set specific quality

procedures for CPA firms. Procedures
should depend on such things as the size of
the firm, the number of practice offices,
and the nature of the practice.
The Quality Control Standards Committee
has identified six elements of quality

control that the firm should consider in
setting
up
their
own
policies
and
procedures. (See table bellow)
2010
2 - 66
Elements of Quality Control

Leadership responsibilities for quality within
the firm (tone at the top)
Relevant ethical requirements
Acceptance and continuation of clients and
engagements
Human resources
Engagement performance
Monitoring
2010
2 - 67

Element
Leadership
responsibilities
for
quality within the firm (tone at the
top)
The firm should promote a culture that

quality is essential in performing
Summary of engagement
and
should
establish
Requiremen
policies and procedures that support
ts
that culture.
The firms training program emphasize
Example of the importance of quality work, and this
a Procedure is reinforced in performance evaluation
and compensation decisions.
2010
2 - 68

Element Relevant ethical requirements
Summary of
Requiremen
ts
All personnel on engagements should

maintain independence in fact and in
appearance,
perform
all
professional
responsibilities with integrity, and maintain
objectivity in performing their professional
responsibilities.
Each partner and employee must answer an

Example of Independent
Questionnaire
annually,
a Procedure dealing with such things as stock ownership
and membership on a Board of Director.
2010
2 - 69

Acceptance and continuation
Element of client and engagements
Policies
and
procedures
should
be
established for deciding whether to accept
or continue a client relationship. These
policies and procedures should minimize
Summary of the risk of associating with client whose
Requiremen management lacks integrity. The firm
ts
should also only undertake engagements
that can be completed with professional
competence.
A client evaluation form, dealing with such

Example of matters as predecessor auditor comments,
a Procedure and evaluation of management must be
prepared11/e, Arens/Beasley/Elder
for every new client before2 - 70
2010

Element Human resources
Summary
of
Requireme
nts
Policies and procedures should be established to provide the

firm with reasonable assurance that:
All new personnel should be qualified to perform their work
competently.
Work is assigned to personnel who have adequate technical
and training proficiency.
All personnel should participate in continuing professional
education and professional development activities that
enable them to fulfill their assigned responsibilities.
Personnel selected to advancement have the qualifications
necessary for fulfillment of their assigned responsibilities.
Example of Each professional must be evaluated on

a
every
engagement
using
the
firms
Procedure individual engagement evaluation report.
2010
2 - 71

Engagement performance
Element
Policies and procedures should
Summary of exist to ensure that the work
Requirement perform by engagement personnel
s
meets
applicable
professional
standers,
regular
requirements,
and the firms standers of quality.
The firms director of accounting
auditing
is
available
for
Example of a and
Procedure conclusion and must approve all
engagements
before
their
completion.
2 - 72
2010

Element Monitoring
Summary of
Requirement
s
Example of a
Procedure
Policies and procedures should

exist to ensure that the others
quality control elements are
being effectively applied.
The quality control partner must
test
the
quality
control
procedures at least annually to
ensure the firm is in compliance.
2010
2 - 73
Relationships
Quality control
standards
Generally accepted
auditing standards
Division of
CPA firms
Peer
review
2010
2 - 74
CPAs Encouraged to Conduct

Themselves at a High Level
CPA
examination
Quality
control
GAAS and
interpretations
Conduct of
CPA firm
personnel
Peer
review
PCAOB
and SEC
Code of
Professional
Conduct
2010
Continuing
education
requirements
Legal
liability
Division of
CPA firms
2 - 75
End of Chapter 2
2010 Prentice Hall Business Publishing, Auditing 13/e, Arens/Beasley/Elder
2 - 76

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The CPA Profession

Describe the nature of CPA firms,

Certified Public Accounting Firms

CPA firms also provide many other services to

Certified Public Accounting Firms

These four firms have offices in most major

Certified Public Accounting Firms

Certified Public Accounting Firms

international CPA firms.

States and worldwide and many smaller

Certified Public Accounting Firms

called national firms because they have

firms are large but

The national firms perform the same services

as the Big Four firms and compete directly

other countries and therefore

Certified Public Accounting Firms

are less than 200 CPA firms with

Regional and large local firms compete for clients

with other CPA firms, including National and Big

affiliated with associations of CPA firms to share

Certified Public Accounting Firms

fewer than 25 professionals in a singleoffice firm.

audits and primarily provide accounting

Activities of CPA Firms

discussed in chapter 1, CPA firms

Additional services commonly provided by

firms continue to develop new

Activities of CPA Firms

Accounting and bookkeeping services

Activities of CPA Firms

rely on CPA firms to prepare their financial

and bookkeeping services to meet the needs of

are to be given to a third party, a review or even

Activities of CPA Firms

tax returns for both audit and nonaudit

services, which may include estate tax, tax

more important to there practice than

Activities of CPA Firms

enable their clients to operate their businesses

or management advisory services.

improving the clients accounting system to

exclusively in management consulting services2 - 14

Structure of CPA Firms

Structure of CPA Firms

Independence permits auditors to remain

Competence permits auditors to conduct

Professional Corporation (PC):

A limited liability company (LLC) combines

one or more partners. it is structured and taxed

personally liable for the

Partners are NOT personally liable for liabilities

arising from negligent acts of other partners and

Hierarchy of A typical CPA Firm

includes partners or shareholders,

and spends 2 or 3 years in each classification

but the structure is similar in all.

mean the person performing some aspect of an

and is responsible for

Helps the in-charge plan and

Reviews the overall audit work and

Company Accounting Oversight Board (PCAOB),

public companies, established auditing and

PCAOB requires annual inspection of