Part 2 Sarbanes-Oxley and PCAOB (25 points) 1. The PCAOB has been authorized to establish auditing standards to be followed on audits of companies whose stock is publically traded. Only two of the five standard setters are allowed to be CPAs. (I) Write a sentence IN FAVOR of the policy of allowing only two members of the Board to be CPAS (II) Write a sentence AGAINST the policy of allowing only two members of the Board to be CPAs 4 2. Anewer the "true" false" questions shown below 1. Two CPAs allowed on the Board: I. In favor II. Against 2. TrueFalse Statements A. Section 404 of the Sarbanes Oxley law requires the CPA firm auditing a company to take responsibility for the company's internal controls B. The Sarbanes-Oxley Act strengthened auditor independence by requiring audit committees to appoint the auditors C. An audit committee must be composed of outside directors D. The PCAOB is authorized to set accounting standards for E. The name of the PCAOB is the Public Company Accounting An example of an outside director is a director who is a CIO (chief informational officer) of a segment of the company. audits of companies whose stock is publically traded Oversight Board. Answers: TRUE or FALSE A