Anderson, LLC, is a large registered public accounting firm that is the continuing auditor of PubCo, an issuer of publicly traded securities subject to the Securities Exchange Act of 1934. Under the Sarbanes-Oxley Act of 2002, Anderson
A. Must rotate all partners off the PubCo audit every 5 years.
B. Will be criminally liable for destroying its working papers 2 years after each audit.
C. Is subject to inspections by the PCAOB every 3 years.
D. May provide internal auditing services to PubCo even though the work will be subject to audit procedures.
Answer: B. Will be criminally liable for destroying its working papers 2 years after each audit.
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