Factors that the auditor should consider as increasing the effectiveness of the audit committee include all of the following except whether:
A)It is independent of management.
B)It is comprised almost exclusively of members of management, ensuring detailed knowledge of the company's operations.
C)It asks management difficult questions.
D)It interacts regularly with internal audit personnel.

Question

Quizplus · Accepted Answer

The effectiveness of the audit committee would not be increased by comprising it almost exclusively of members of management, as this would not ensure independence or objectivity in their oversight of company operations. The other factors listed (independence, asking difficult questions, interacting with internal audit personnel) are important for enhancing the effectiveness of the audit committee.

Factors That the Auditor Should Consider as Increasing the Effectiveness