Which of the Following Requires That Audit Committee Members Be

question 58

Multiple Choice

Which of the following requires that audit committee members be financially literate?

• A) Securities Exchange Commission
• B) Sarbanes-Oxley Act
• C) Foreign Corrupt Practices Act
• D) American Institute of Certified Public Accountants

---

Definitions:

Decreases

A reduction in quantity, size, or the overall level of an economic indicator or financial value.

Expenses With No Cash Outflows

Costs recognized in the accounting period that do not require an immediate cash outlay, such as depreciation.

Expenses and Losses

Outflows or the using up of assets as a result of the company's efforts to generate revenue, including losses from various sources.

No Cash Outflows

A situation or period during which a business or project does not expend cash.