What is a$$ "practice inspection" and what are the implications of the term for the public accounting$$ profession? What$$ organization$($s$)$ conduct$($s$)$ practice$$ inspections?

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Part $1$

What is a$$ "practice inspection," and what$$ organization$($s$)$ conduct$($s$)$ practice$$ inspections?

$1.$

Practice inspection is a$$ review, by practice inspectors employed by the provincial institute or ordre$,$ of a CPA$$ firm's compliance with its continuing education requirements and its compliance with the CPA Canada Handbook.

$2.$

Practice inspection is a$$ review, by practice inspectors employed by the provincial institute or ordre$,$ of a public accounting$$ firm's compliance with its quality control procedure system for auditing and accounting$$ engagements, and its compliance with the CPA Canada Handbook.

Your answer is correct$\mathrm{.}3.$

Practice inspection is a$$ review, by$$ CPAs, of a public accounting$$ firm's compliance with its continuing education requirements and its compliance with the CPA Canada Handbook.

$4.$

Practice inspection is a$$ review, by$$ CPAs, of a public accounting$$ firm's compliance with its quality control procedure system for auditing and accounting $$engagements$,$ and its compliance with the CPA Canada Handbook.

Part $2$

What are the implications of the term$$ "practice inspection" for the public accounting$$ profession?

Practice inspection is

mandatory

in those provinces that have

instituted it$.$

Practice inspections can be

beneficial

to the profession and to individual firms