Which one of the following statements is true?
A) The audit committee provides contact between the board of directors and the key officers of the company.
B) The audit committee has become less involved in the financial accounting system as a result of the Foreign Corrupt Practices Act.
C) The audit committee is a board of directors subset that acts as a direct contact between the stockholders and the independent accounting firm.
D) The board of directors consists of the company's external auditors.

Question

Quizplus · Accepted Answer

The audit committee is indeed a subset of the board of directors, and its primary role includes acting as the liaison between the company's shareholders and the independent auditors, ensuring the integrity of the financial statements and compliance with legal and regulatory requirements.

Which One of the Following Statements Is True