Members of the Audit Committee Are Responsible for Each of the Following

question 16

Multiple Choice

Members of the audit committee are responsible for each of the following except for:

• A) Considering risks identified by the external auditor
• B) Assessing whether management has set the appropriate ethical tone for the organization
• C) Discussing with the external auditors financial reporting matters of concern
• D) Rendering an audit opinion after examining the entity's financial statements and internal controls

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Definitions:

Direct Method

A method of reporting cash flows from operating activities by showing major classes of gross cash receipts and payments.

Operating Activities

Activities that relate directly to the business's primary operations and functions, including sales, distribution, and production, influencing the day-to-day profitability.

Cash Receipts

The collection of money, including cash and checks, received by a business during a specific period.

Plant Assets

Long-term tangible assets used in the production of goods and services, such as buildings, machinery, and equipment.