A CPA firm must do which of the following before it can participate in the preparation of an audit report of a company registered with the Securities and Exchange Commission (SEC)?
a.
Register with the Public Company Accounting Oversight Board.
b.
Register with the SEC pursuant to the Securities Exchange Act of 1934.
c.
Register with the Financial Accounting Standards Board (FASB).
Choice "A" is correct. To participate in the preparation of audit reports for a company registered with the SEC, a CPA firm must first register with the Public Company Accounting Oversight Board. Choices "d", "c", and "b" are incorrect, per the above.
