Sarbanes Oxley and PCAOB (25 pointa) 1. The PCAOB has been authorized to establiah auditing standards to be followed on audits of companies whoae stock is publically traded. Only two of the five standard setters are allowed to be CPAS. (I) Write a sentence, or two, IN FAVOR of the policy of allowing only two membera of the Board to be CPAS: (II) Write a sentence, or two, AGAINST the policy of allowing only two members of the Board to be CPAS 2. Answer the "true"false" questions ahown below 1. Two CPAs allowed on the Board: I. In favor II. Against 2. TrueFalse Statements A. Thenam of the PCAOB 1s the "Publie cCompany Auditing Oversight Board" B. Section 404 of the Sarbanes-oxley law requires the CPA firm c. The sarbanes-Oxley Act strengthened auditor independence by D. An audit committee must be composed of outside directors. Auditing a company to issue a report (audit opinion) on the company's internal controls requiring audit committees to appoint the auditors An example of an outside director would be a director who is not a member of management and has no other relationship to the organization, E The PCAOB is authorized to set auditing standards for audits of companies whose stock is publically tradecd Answers TRUE" or "FALSE B