The audit committee of the board of directors must exercise oversight over the design and the performance of internal controls over financial reporting, as well as not delegating the responsibilities for these internal controls to management.

Question

Quizplus · Accepted Answer

The audit committee does indeed exercise oversight over the design and performance of internal controls over financial reporting, but it is actually management's responsibility to design, implement, and maintain these internal controls. The audit committee oversees this process to ensure it is being done properly, but does not take on these responsibilities directly.

The Audit Committee of the Board of Directors Must Exercise