1. True - False Statements

1. The AICPAs Auditing Standards Board was created by the

Sarbanes-Oxley Act [SOX].

2. The Sarbanes-Oxley Act strengthened auditor independence by requiring audit committees to appoint the auditors.
3. An audit committee of a public company is composed of outside directors. An example of an outside director is the CFO (Chief Financial Officer)of the company.
4. Section 404 of the Sarbanes Oxley law requires that both company management and the CPA firm auditing a Public company issue a report on the companys internal controls.
5. SOX states that there is to be a one-year cooling off period before a high-ranking member of the audit [i.e. CPA Firm audit partner assigned to the audit] can take a high-ranking position of the audited company [i.e. Chief Financial Officer]. EmilyAnne was the audit partner on the XYZ Company audit for the year ended 31 December 2020. EmilyAnne will not be able to accept a job as CFO of XYZ company and start work on 17 March 2021.