The Knoblox Container Corporation (KCC) has been a small, family-owned concern for several years. Recently its business has rapidly expanded, and it needs substantial financing. Indeed, it plans to hold an IPO and to list its shares on the NYSE. KCC's officers realize that their old way of doing thingspulling relatives together around the kitchen table to discuss the big issuesis probably not going to be satisfactory in the post-Sarbanes-Oxley world. Its officers are hoping to receive some guidance from KCC's audit firmContinuous Audit Firm (CAF)which already has several public company audit clients. Required: For each item, select which statement (A or B) is the best answer choice. If both or neither are correct, select the appropriate response. A. KCC must establish an audit committee with a majority of independent directors. B. KCC's audit committee must establish procedures for handling whistleblower complaints