Which of the following statements regarding the audit committee is true?
A) It is a standing subcommittee of the board of directors.
B) Its main objectives are to protect against management wrongdoing and to increase public confidence in the independent auditor's opinion.
C) The committee should be composed of independent board members.
D) A, B, and C
E) B and C only D

Question

Quizplus · Accepted Answer

All the given statements regarding the audit committee are true. The audit committee is a standing subcommittee of the board of directors, and its main objectives are to protect against management wrongdoing and to increase public confidence in the independent auditor's opinion. It is also recommended that the committee should be composed of independent board members to ensure impartiality in decision-making. Therefore, all options A, B, and C are correct, making option D the best choice.

Which of the Following Statements Regarding the Audit Committee Is