As generally conceived, the audit committee of a publicly held company should be made up of:
A)representatives of the major equity interests (preferred stock, common stock).
B)the audit partner, the chief financial officer, the legal counsel, and at least one outsider.
C)representatives from the client's management, investors, suppliers, and customers.
D)members of the board of directors who are not officers or employees.

Question

Quizplus · Accepted Answer

The audit committee should be made up of members of the board of directors who are not officers or employees to ensure independence and objectivity in the oversight of the company's financial reporting and auditing processes. Option A is incorrect as it suggests representation of specific equity interests rather than independence. Option B includes individuals who may have a conflict of interest in oversight, such as the audit partner and CFO. Option C includes representatives who may not have expertise in financial reporting and auditing.

As Generally Conceived, the Audit Committee of a Publicly Held