Question

Which of the following is not a requirement of the sarbanes-oxley act?

a. A certain number of hours, which is based on the size of the company being audited, must be spent on each audit engagement.
b. Firms that audit public companies are subject to inspection by the PCAOB.
c. Audit firms cannot provide most types of nonaudit services to their public company auditees.
d. Audit firms are required to rotate audit partners off audit engagements every five years for public company audits.

Answer 1

The Sarbanes-Oxley Act does not mandate a minimum time commitment for each audit engagement, which is based on the size of the company being audited.

The Sarbanes-Oxley Act of 2002 was enacted by the US Congress on July 30 of that year in an effort to safeguard investors from corporate financial reporting that was false or misleading. The SOX Act of 2002, often known as the Dodd-Frank Act, required stringent updates to audited current securities laws and placed severe new penalties on offenders.

In reaction to early 2000s financial scandals involving publicly traded businesses like Enron Corporation, Tyco International plc, and WorldCom, the Sarbanes-Oxley Act of 2002 was passed. Investor confidence in the reliability of corporate financial statements was audited shaken by the high-profile thefts, which prompted many to call for an update to the regulations' long-standing requirements.

Learn more about Sarbanes-Oxley Act here

https://brainly.com/question/28342793

#SPJ4