Which One of the Following Will Not Assist the Audit

question 22

Multiple Choice

Which one of the following will not assist the audit committee in assessing whether the annual report and financial statements present a fair, balanced and understandable assessment of a company's position and prospects?

• A) Requiring audit committee members to have competence relevant to the sector in which the company operates.
• B) Requiring at least one audit committee member to have recent, relevant financial experience.
• C) Requiring the audit committee to be composed of at least three non-executive directors.
• D) Requiring the audit committee to meet with the external auditor on a regular basis to discuss the financial statements and any issues arising.

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Definitions:

Investments

Assets or items acquired with the goal of generating income or appreciation, such as stocks, bonds, real estate, or commodities.

Average Rate

The mean rate calculated over a period or series of events, often used in finance to describe average interest or return rates.

Return

The profit or loss derived from an investment over a particular period, usually expressed as a percentage.

Investment

Putting money into channels with the expectation of financial growth or profit generation.