The Audit Committee consists of
A) Members of management.
B) A subcommittee of the AICPA who establish the SAS.
C) Members of the Board of Directors.
D) Appointed government overseers.

Question

Quizplus · Accepted Answer

The Audit Committee is typically made up of members of the Board of Directors who are independent of management. This helps to ensure objectivity and independence in the audit process. Option A is incorrect because the committee should not consist of members of management in order to maintain independence. Option B is incorrect because the AICPA establishes auditing standards but does not have a subcommittee for audits. Option D is incorrect because government overseers may be involved in auditing, but they would not typically be part of the Audit Committee.

The Audit Committee Consists of