What Is the Audit Committee of the Board of Directors

question 43

Multiple Choice

What is the audit committee of the board of directors of a company responsible for?

• A) Hiring the auditor.
• B) Preparing the financial statements.
• C) The audit workpapers.
• D) Obtaining evidence.

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Definitions:

Derivative Security

A financial security whose value is derived from the value of an underlying asset, such as stocks, bonds, commodities, or currencies.

Common Share

A type of equity security that represents ownership in a corporation and entitles the holder to voting rights and dividends.

Derivative Security

A financial instrument whose value is based on the performance of an underlying asset, index, or security.

Related Security

Related Security implies a financial instrument that is linked to another in terms of performance, underlying assets, or issuer.