Which One of the Following Requires the Audit Committee to Be

question 21

Multiple Choice

Which one of the following requires the audit committee to be responsible for the appointment and compensation of the external auditor?

• A) The Securities Act of 1933.
• B) The Securities Exchange Act of 1934.
• C) The Investment Company Act of 1940.
• D) The Foreign Corrupt Practices Act of 1977.
• E) The Sarbanes-Oxley Act of 2002.

---

Definitions:

Imperfectly Competitive Market

A market structure where individual firms have some control over the price of their products due to factors like product differentiation or few competitors.

Purely Competitive Market

A market structure characterized by many buyers and sellers, free entry and exit, and homogeneous products.

Units of Labor

A measurement in economics indicating the quantifiable effort or work provided by labor forces, often used to determine productivity or cost in production processes.

Capital

Financial assets or the financial value of assets, such as funds held in deposit accounts and/or the physical factories, machinery and equipment used to produce goods.