Which of the Following Is a Limitation of SEC Requirements

question 11

Multiple Choice

Which of the following is a limitation of SEC requirements for audit committee membership?

• A)The additional responsibilities make service on the committee less desirable to competent directors.
• B)External auditors are unwilling to report to an independent audit committee.
• C)The audit committee compromises the external auditor's independence.
• D)Only the United Kingdom and the United States require audit committees,putting corporations in these countries at a disadvantage.

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Definitions:

Car Lubricant

A substance used in vehicles to reduce friction, heat, and wear between mechanical components that are in contact.

Sticker

A type of adhesive label or decoration which can be attached to surfaces for informational or decorative purposes.

Nonpersonal Selling

A promotional method using advertising, sales promotions, and other mass-market approaches to sell products, as opposed to direct, face-to-face sales.