Under Sarbanes-Oxley, Who Cannot Be a Member of an Audit

question 32

Multiple Choice

Under Sarbanes-Oxley, who cannot be a member of an audit committee of a publicly traded company?

• A) Officer
• B) Outside lawyer for the company
• C) Consultant to the company
• D) All of the above cannot be a member of the company's audit committee

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Definitions:

Intended Third-Party Beneficiaries

Individuals or groups not directly involved in a contract who are nevertheless intended by the contracting parties to benefit from the contract's performance.

Creditor Beneficiaries

Individuals or entities that benefit from a contract made between two other parties, particularly in their capacity to receive a debt payment.

Donee Beneficiaries

Third-party beneficiaries for whom a contract is made to benefit as a gift, giving them the right to enforce the contract against the promisor.

Assigned Donees

Individuals or entities designated to receive specific gifts or donations.