Firm a Performs Audits of 60 Issuers, While Firm B

Multiple Choice

Firm A performs audits of 60 issuers, while firm B performs audits of 120 issuers. How often must each firm undergo a PCAOB inspection?

A) Both firm A and firm B will be inspected every other year.
B) Firm A will be inspected annually and firm B will be inspected every three years.
C) Firm A will be inspected every three years and firm B will be inspected annually.
D) Both firm A and firm B will be inspected annually.