The audit committee is responsible for all the following EXCEPT:
A) Appointing and overseeing the external auditors.
B) Directing investigations of possible fraud.
C) Establishing internal control.
D) Reviewing financial information.

Question

Quizplus · Accepted Answer

The audit committee is responsible for overseeing the establishment of internal control, not establishing it themselves. Therefore, choice C is the correct answer. The other choices—appointing and overseeing the external auditors, directing investigations of possible fraud, and reviewing financial information—are all responsibilities of the audit committee.

The Audit Committee Is Responsible for All the Following EXCEPT