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

---

Definitions:

Performance Deficiency

A situation where an individual's work output fails to meet the expected standards or objectives.

Actual Situation

The real or existing state of affairs or circumstances, without any changes or alterations.

Better Than Anticipated

A situation or outcome that exceeds previously set expectations or forecasts.

Systematic Thinking

Thinking that approaches problems in a rational and analytical fashion.