Which of the Following Are Appropriate Responsibilities of the Audit

question 153

Multiple Choice

Which of the following are appropriate responsibilities of the audit committee in relation to the chief audit executive (CAE) ? 1. Approving the internal audit charter. 2. Approving decisions regarding the appointment and removal of the CAE. 3. Approving the risk management strategy for the organization. 4. Making appropriate inquiries of management and the CAE to determine whether there are inappropriate scope and resource limitations.

• A) 1 and 2 only
• B) 1, 2, and 3 only
• C) 1, 2, and 4 only
• D) 2, 3, and 4 only

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Definitions:

Customer Base

The group of consumers who repeatedly purchase the goods or services of a business, forming the foundation of the company's sales.

Capital

Financial assets or the financial value of assets, such as cash and goods, used by a business to fund its operations and investments.

High-growth Firms

Companies characterized by their fast-paced growth in revenues, market share, or employees, typically outperforming their industry averages.

High-tech

Referring to industries or products involving the latest technology, often in the fields of electronics, computers, and biotechnology.