Which of the Following Statements Regarding Audit Committees Is Incorrect

question 21

Multiple Choice

Which of the following statements regarding audit committees is incorrect?

• A) Audit committees review internal control procedures.
• B) Audit committees oversee the appointment and relationship of the external auditor.
• C) Audit committees oversee the appointment of the internal and external auditors.
• D) Audit committee members must be employees of the company.

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Definitions:

Potential Suppliers

Companies or individuals who might be able to provide goods or services that an organization needs.

Buying Center

A group of people within an organization who are involved in the decision-making process for a purchase.

Deciders

Individuals or groups within an organization who have the authority to make final purchasing decisions.

Gatekeepers

Individuals or entities that control access to something, often information or resources.