Which of the following is true of an audit committee?

Question

Quizplus · Accepted Answer

An audit committee is a subcommittee of the board of directors and it must have at least one financial expert who has knowledge in financial reporting and auditing. Option A is incorrect because inside directors are not eligible to be members of the audit committee. Option C is incorrect because an audit committee is not composed of shareholders. Option D is incorrect because an audit committee is not formed by executive directors.

Which of the Following Is True of an Audit Committee