Sarbanes-Oxley requires that the audit committee be composed of
A) At least 50% of key officers who are on the board of directors
B) A majority of all of the members of the board of directors
C) The outside members of the board of directors and the external auditor
D) Entirely outside members of the board of directors

Question

Quizplus · Accepted Answer

Sarbanes-Oxley requires that the audit committee be composed entirely of outside members of the board of directors, meaning individuals who are not employees or officers of the company. This is meant to ensure that the audit committee has a level of independence and can provide objective oversight of the company's financial reporting and accounting practices.

Sarbanes-Oxley Requires That the Audit Committee Be Composed of