Which of the Following Is Not True About the Audit

question 65

Multiple Choice

Which of the following is not true about the audit committee of the board of directors?

• A) They meet with the auditors to discuss management's compliance with their financial reporting responsibilities.
• B) They ensure the accuracy and completeness of all reports provided to the Securities & Exchange Commission (SEC).
• C)They are responsible for ensuring that are in place for maintaining the integrity of the financial statement preparation and reporting.
• D)They are responsible for hiring the company's external auditors.

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Definitions:

Promissory Note

A financial instrument that contains a written promise by one party to pay another party a definite sum of money, either on demand or at a specified future date.

Maturity Date

The specified date on which the principal amount of a financial instrument, such as a bond, loan or fixed deposit, is due to be repaid.

Negotiability

The quality of being transferable by endorsement or delivery so as to enable the holder to pass title to a third party.

Cashier's Check

A bank-issued check that is drawn from the bank's own funds and signed by a cashier, commonly used for significant transactions requiring guaranteed funds.