Which of the following requires auditor rotation by prohibiting the same person from being the lead auditor for more than five consecutive years?
A) The Association of Certified Fraud Examiners
B) The Securities and Exchange Commission
C) The American Institute of Certified Public Accountants
D) The Financial Accounting Standards Board
E) Sarbanes-Oxley Act of 2002
Answer: E
Explanation: E) Federal regulations, in particular the Sarbanes-Oxley Act of 2002, have been enacted to restore and maintain public trust in corporate accounting practices. A CPA firm can help design a client's financial information system, but not if it also does the client's auditing.
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