The Purpose of the Audit Committee Within an Organization Is

question 55

Multiple Choice

The purpose of the audit committee within an organization is to

• A) Regulate the internal control system
• B) Be responsible for the external and internal auditors
• C) Examine the financial statements to determine if they are free from material misstatement
• D) Monitor operating results and financial records

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Definitions:

CEO

Chief Executive Officer, the highest-ranking person in a company or organization, responsible for making major corporate decisions.

CFO

The Chief Financial Officer is a high-ranking executive responsible for managing the financial actions of a company, including financial planning and record-keeping.

Companies

Organizations engaged in commercial, industrial, or professional activities.

Financial Control

The management of a firm's costs and expenses in order to ensure efficiency, accountability, and profitability.