Under the PCAOB rules, a CPA firm is prohibited from doing bookkeeping work for a company the CPA firm audits. Section 404 of the Sarbanes Oxley law requires that both company management and the CPA firm auditing a Public company issue a report on the company's internal controls. SOX states that there is to be a "one-year cooling off period" before a high-ranking member of the audit (i.e. CPA Firm audit partner assigned to the audit] can take a high-ranking position of the audited company [i.e. Chief Financial Officer]. EmilyAnne was the audit partner on the XYZ Company audit for the year ended 31 December 2021. EmilyAnne will not be able to accept a job as CFO of XYZ company and start work on 17 March 2022. The primary purpose of the Sarbanes-Oxley .Act is to protect investors by improving the accuracy and reliability of the corporate disclosures made pursuant to the securities laws. The Sarbanes-Oxley Act strengthened auditor independence by requiring audit committees to appoint the auditors. An audit committee of a "public" company is composed of outside directors. An example of an outside director is the CFO (Chief Financial Officer of the company.

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True The PCAOB is required to establish or adopt or both auditi... View the full answer