Which of the Following Statements Regarding an Audit Committee Is

question 30

Multiple Choice

Which of the following statements regarding an audit committee is true?

• A)The Australian and New Zealand approach of the establishment of an audit committee is legislated for mandatory compliance.
• B)The US approach of the establishment of an audit committee encourages companies to follow best practice.
• C)The existence of an independent audit committee is recognised internationally as an important feature of good corporate governance.
• D)All of the options are correct.

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Definitions:

Depreciation

Depreciation is an accounting method of allocating the cost of a tangible or physical asset over its useful life, reflecting wear and tear, or obsolescence of the asset.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenue, expenses, and profits.

Double-Entry Bookkeeping

Process by which accounting transactions are entered; each individual transaction always has an offsetting transaction.

Owner's Equity

The residual interest in the assets of a business after deducting its liabilities, representing the owners' share of the company's resources.