The ASXs Corporate Governance Principles Suggest That the Audit Committee

question 21

Multiple Choice

The ASXs corporate governance principles suggest that the audit committee should:

• A)consist of at least three non-executive directors with an independent chair
• B)review the integrity of the company's financial reporting
• C)oversee the independence of the external auditors
• D)All of the options are correct.

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Definitions:

Budgeting

The process of creating a plan to spend your money, outlining projected income and expenses for a certain period.

Budgeted Income Statement

A financial projection that estimates a company's revenue and expenses over a specific future period, predicting net income or loss.

Budgeted Balance Sheet

A financial statement projecting the future financial position of a company, based on expected assets, liabilities, and equity.

Continuous Budget

A 12-month budget that rolls forward one month as the current month is completed.