The Audit Committee Must Be Composed of Outsiders Such as the Organization's

question 2

True/False

The audit committee must be composed of outsiders such as the organization's attorney and audit partner.

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Definitions:

Group Attribution Error

The tendency to make broad stereotypical judgments about a group based on the actions of a few individuals within that group.

Ultimate Attribution Error

A bias in which negative behaviors by out-group members are attributed to their character, while similar actions by in-group members are attributed to situational factors.

Law Of Small Numbers

A cognitive bias where people infer broader conclusions from a small set of observations than is statistically warranted.

Bias

A tendency to lean in a certain direction, often to the detriment of an open mind, leading to partial judgment or prejudice.