Under Sarbanes-Oxley,the Audit Committee of a Public Company

question 58

Multiple Choice

Under Sarbanes-Oxley,the audit committee of a public company

• A)must meet on a monthly basis.
• B)must be comprised entirely of financial experts.
• C)is responsible for the oversight of the work of the independent auditor.
• D)should have at least one independent member.

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Definitions:

Noncontrolling Interest

The share of ownership in a subsidiary that cannot be directly or indirectly linked to the parent company.

Fair Value

The revenue expected from an asset sale or the cost to offload a liability in a transaction with market players on the date it is appraised.

Residual Income

Income that remains after all operating expenses and costs of capital have been deducted.

Consolidated Net Income

The total net income of a parent company and its subsidiaries after eliminating intercompany transactions and distributions to noncontrolling interests.