1. Sarbanes-Oxley (SOX) applies to:

A. All corporations that must report to the FASB

B. Publicly-traded U.S. companies

C. Any U.S. entity that issues common stock

D. All U.S. corporations

2. The Public Company Oversight Board (PCAOB):

A. Is a federal government agency that creates general accepted accounting principles for public companies

B. Creates and administers federal securities laws

C. Establishes standards for the audits of financial statements of public companies and provides oversight of the auditors of issuers

D. Sets the requirements for companies to be listed on national exchanges such as the New York Stock Exchange and the NASDAQ

3. Internal auditors can never be independent because they are employees of the company they audit. However, their degree of objectivity is increased if they report directly to:

A. The CFO

B. The CEO

C. The audit committee

D. The controller