Which of the Following Is Not True About the Audit

question 6

Multiple Choice

Which of the following is not true about the audit committee of the board of directors?

• A)They meet with the auditors to discuss management's compliance with their financial reporting responsibilities.
• B)They ensure the accuracy and completeness of all reports provided to the Securities & Exchange Commission (SEC).
• C)They are responsible for ensuring that processes are in place for maintaining the integrity of the financial statement preparation and reporting.
• D)They are responsible for hiring the company's external auditors.

---

Definitions:

Indirect Materials

Materials used in the production process but not directly traceable to a specific product.

Work In Process

An inventory category that refers to partially completed goods that are still in production.

FIFO Method

"First In, First Out" method, an inventory costing technique that assumes the first items added to inventory are the first ones sold.

Beginning Inventory

The value of all the inventory held by a business at the start of an accounting period.