An Audit Committee

question 29

Multiple Choice

An audit committee

• A) is composed only of an organization's shareholders.
• B) should be primarily composed of only external board members (a NYSE requirement).
• C) ideally should be composed only of members who are also high-level executives in the organization.
• D) ideally should report directly to the controller.

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Definitions:

Neutralization

A chemical reaction in which an acid and a base react quantitatively to form water and a salt, effectively balancing the acid and base.

HCl

Hydrochloric acid, a strong corrosive acid that is a solution of hydrogen chloride in water, used in industrial and manufacturing processes.

NaOH

Sodium hydroxide, a strong alkaline compound used in the manufacturing of various products, such as paper, textiles, and soaps.

KBr

Potassium Bromide, a chemical compound used in photography, pharmaceuticals, and as a sedative in veterinary medicine.