Question

Which of the following are required by the Sarbanes-Oxley Act? (Select all that apply.) art 2 of 3 21 Check All That Apply Skipped Auditors of public companies are allowed to perform nonaudit services for audit clients as long as the audit committee of the company being audited has preapproved those services. Book Print Auditors of public companies must retain all audit or review work papers for seven years or face the threat of a prison term for willful violations Corporate executives who personally certify financial statements that are fraudulently misstated may be fined and/or imprisoned. Lead audit partners are required to rotate every seven years.

Answer 1

1. Book Prink Auditors of public companies must retain all audit or review work papers for seven years or face the threat of a prison term for willful violations.

2. Corporate executives who personally certify financial statements that are fraudulently misstated may be fined and/or imprisoned.

3. Lead audit partners are required to rotate every seven years.

Step-by-step explanation:

The Sarbanes-Oxley Act (SOX)

SOX has several requirements to improve corporate governance and financial reporting.

Retention of audit work papers, auditors of public companies must keep their audit or review work papers for seven years to ensure transparency and accountability.

Accountability of corporate executives, executives who certify fraudulent financial statements risk fines and imprisonment, highlighting the need of correct reporting.

Lead audit partners are rotated, to guarantee independence and objectivity, the primary auditors who oversee corporate audits must change every seven years.