21) The SOX Act requires external auditors ________.
A) provide information-processing consulting services
B) to form an audit committee which includes the CEO
C) to be a member of the executive committee
D) to report to the client's audit committee rather than the client's management team
22) The SOX Act requires ________.
A) the executives to be CPAs
B) the external auditors to prepare as well as audit their client's financial statements
C) a report on the effectiveness of the company's internal controls be included with its annual report
D) executive compensation no longer be tied to earnings
23) The SOX Act requires ________.
A) the CEO and the CFO to certify the annual financial statements
B) the external auditors to prepare, as well as audit, their client's financial statements
C) financial statements be audited by two independent external auditors each year
D) executive compensation no longer be tied to earnings
24) The Sarbanes-Oxley Act of 2002 includes stronger rules regarding auditor independence.
25) The PCAOB has the charge of overseeing the auditing profession.
26) The PCAOB has the charge of overseeing the SEC and FASB.