PCAOB Standards Require the Auditor to Evaluate the Effectiveness of the Audit

question 48

Multiple Choice

PCAOB standards require the auditor to evaluate the effectiveness of the audit committee as part of understanding the control environment and monitoring. Which of the following is not a factor the auditor should consider in making this evaluation?

• A) The audit committee's responsiveness to issues raised by the auditor.
• B) The independence of the audit committee from management.
• C) Compensation practices with respect to members of the audit committee.
• D) The clarity with which the audit committee's responsibilities are articulated.
• E) The audit committee's interaction with key members of financial management.

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