What Is an Audit Committee

question 8

Multiple Choice

What is an audit committee?

• A) It is a group of audit firms that develop national or international standards for auditing practice.
• B) It is a subset of a corporate board of directors with oversight of the auditing function.
• C) It is the team of external auditors (i.e. CPAs) that conducts audit testing and prepares the audit report.
• D) It is a management group responsible for negotiating the audit engagement with a public accounting firm.

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Definitions:

Prospectors

Organizations that focus on innovation, seeking new opportunities, and exploring uncharted markets as part of their strategic orientation.

Strategists

Individuals responsible for developing and implementing strategies to achieve organizational goals.

Avoiding Uncertainty

The degree to which individuals or cultures are uncomfortable with uncertainty and ambiguity, seeking stability and clarity.

Planning

The process of making decisions about goals and the steps necessary to achieve them, often considering resources and constraints.