In Australia and New Zealand,ASX guidelines encourage the appointment and evaluation of performance of external auditors to be carried out by:
A)Chief Executive Officer (CEO)
B)Board of directors
C)Audit committee
D)Chief Financial Officer (CFO)

Question

Quizplus · Accepted Answer

ASX guidelines suggest that the appointment and evaluation of external auditors should be carried out by the audit committee. This is because the audit committee is responsible for overseeing the financial reporting process and ensuring the integrity of the company's financial statements. The audit committee is typically made up of independent directors who are not involved in the day-to-day operations of the company, making them well-suited to provide an objective evaluation of the external auditor's performance.

In Australia and New Zealand,ASX Guidelines Encourage the Appointment and Evaluation