Ajax Inc. is a public company ad a new client of Hawtorne Partners, a medium-sized audit firm. Jeffrey Rush is the engagement partner on the audit and has asked the members of the audit team to begin the process of gaining an understanding of the client, in accordance with AS 2110. One audit manager leads the group investigating the industry and economic factors, and another helps Jeffrey consider issues at the entity level. Jeffrey will hold discussions with members of the audit committee and will discuss a wide range of issues. He has a meetig arranged for next week with the four members of the audit committee, including the chair of te committee, Stella South, who like the other members of the audit committee, is an independent director.

Required

a. Make a list of the main factors that will be considered by each audit manager's group.

b. Based on the above information, can you conlude that Ajax Inc. complies with Section 301 of the Sarbabes-Oxley Act regardig its audit committee? Explain.