The New York Stock Exchange requires that the audit committee be

Question

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The New York Stock Exchange requires that the audit committee be composed solely of outside directors to ensure independence and objectivity in overseeing the financial reporting process and internal controls of the company. Option A is incorrect as the audit committee's role is not to comment on external analysts' reports. Option C is incorrect as the committee is responsible for monitoring and overseeing the financial reporting process, but not liable for illegal actions by the management team. Option D is incorrect as the audit committee members do not need to be CPAs with auditing experience, though they should have financial literacy and be able to read financial statements.

The New York Stock Exchange Requires That the Audit Committee