An Audit Committee Must

question 9

Multiple Choice

An Audit Committee must:

• A) Be comprised solely of independent individuals who do not have direct financial interests in the company they serve
• B) Be comprised solely of independent individuals who are not members of the corporation's Board of Directors
• C) Be comprised solely of individuals who also serve as company directors
• D) Approve the core accounting methods selected and applied by the company's auditors in presenting company financial statements

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Definitions:

Important

Something of great significance or value.

Organisation Structures

Refers to the way in which a company or organization is arranged to aid in achieving its objectives, often categorizing departments and roles.

Chain of Command

The hierarchical structure within an organization that outlines authority and responsibility relationships.

Delegation

The act of assigning authority and responsibility to others to carry out specific activities while maintaining accountability for the outcome.