The Sarbanes-Oxley Act of 2002 requires that the audit committee:
A)Annually reassess control risk using information from the CPA firm.
B)Be directly responsible for the appointment,compensation,and oversight of the work of the CPA firm.
C)Require that the company's CPA firm rotate the partner in charge of the audit.
D)Review the level of management compensation.

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act of 2002 requires that the audit committee be directly responsible for the appointment, compensation, and oversight of the work of the CPA firm. This is to ensure the independence of the CPA firm and to avoid any conflicts of interest that could arise if the company management had direct control over the audit process.

The Sarbanes-Oxley Act of 2002 Requires That the Audit Committee