Which of the Following Would Not Be Considered a Function

question 7

Multiple Choice

Which of the following would not be considered a function of an audit committee?

• A) The responsibility for appointing the members of the committee
• B) Overseeing the appointment of the internal auditor
• C) Overseeing the appointment of the external auditor
• D) Overseeing a company's risk management practices

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Definitions:

Earnings per Share

A company's net profit divided by the number of its outstanding shares, indicating the profitability on a per-share basis.

Dividend Payout Ratio

The portion of net income distributed to shareholders in the form of dividends, expressed as a percentage of the company's total net income.

Book Value per Share

A financial measure that indicates the theoretical value per share of a company if it were to liquidate, calculated by dividing total equity by the number of outstanding shares.

Price-earnings Ratio

A valuation metric for companies, calculated by dividing the current market price of a stock by its earnings per share (EPS).