1. The Sarbanes-Oxley Act applies to all corporations.
2. The PCAOB was established by the Securities Act of 1934.
3. Auditors must retain their working papers for a minimum of five years.
4. The auditor must design and create an effective internal control system.
5. Auditor independence is breached by having the audit firm also prepare the tax returns of the publicly traded corporation.
6. An audit partner or a reviewing partner cannot audit the same firm for more than five consecutive years.
7. A Section 302 certification is filed by the publicly traded company’s audit firm.
8. The SEC may permanently bar an executive who violates securities law from serving as an officer or director of a publicly traded company.
9. With few exceptions, all personal loans to directors and executives of a company are prohibited.
10. A public accounting firm is prohibited from auditing a client if the CEO of the audited company once worked for the auditing firm.