Which of the Following Statements Regarding an Audit Committee Is

question 53

Multiple Choice

Which of the following statements regarding an audit committee is not true?

• A)An audit committee is set up to oversee accounting and financial reporting.
• B)An audit committee has a mandate to cover a wide range of assurance activities including those not related to financial reporting.
• C)An audit committee is responsible for considering the effectiveness of the company's internal control system,including information technology security and control.
• D)All ASX listed companies must have an audit committee.

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Definitions:

Cost of Goods Sold

Costs incurred directly from the production of goods a company markets, including both materials and workforce expenses.

Days' Sales

A financial ratio that measures the average number of days a company takes to convert its inventory into sales.

Inventory Turnover

A financial metric measuring the rate at which a company sells and replaces its stock of goods during a particular period.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material and labor expenses.