Which of the Following Is Not an Important Consideration for the Auditor's

question 19

Multiple Choice

Which of the following is not an important consideration for the auditor's assessment of audit committee effectiveness?

• A) Independence of audit committee members from management.
• B) The audit committee's oversight of external financial reporting and ICFR.
• C) The audit committee's approval of the external auditors' approach to the audit.
• D) The audit committee's responsiveness to issues raised by the external auditors.

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Definitions:

Open-Book

A management approach where employees are given access to company financial information to encourage understanding of business operations and promote informed decision making.

Profits

The financial gain obtained when the revenues generated from business activities exceed the expenses, costs, and taxes needed to sustain the activity.

Decision Problem

A situation that requires a choice to be made among different alternatives.

Leader

An individual who guides or directs a group towards achieving a common goal by influencing or motivating their behavior.