The purpose of a disclosure committee _______.
A)is to supervise the internal audit function
B)is to handle all communications with firm attorneys
C)is to work with the CFO or controller to review disclosures
D)is to ensure that the firm receives a 'clean' audit opinion

Question

Quizplus · Accepted Answer

The purpose of a disclosure committee is to work with the CFO or controller to review disclosures. It is responsible for ensuring that all material information is disclosed appropriately in the company's financial statements and reports. The committee reviews financial reports and disclosures to ensure they comply with accounting standards and are accurate and complete. The committee's work is critical because material misstatements or omissions can lead to litigation, government investigations, and reputational damage. The other options (A, B, and D) are not accurate descriptions of the purpose of a disclosure committee.

The Purpose of a Disclosure Committee _______