Audit committees of publicly traded companies must establish whistleblowing mechanisms within the company.

Question

Quizplus · Accepted Answer

According to various regulations, including the Sarbanes-Oxley Act of 2002, audit committees of publicly traded companies are required to establish procedures for the receipt, retention, and treatment of complaints received by the company regarding accounting, internal accounting controls, or auditing matters, and must also establish a confidential, anonymous mechanism for employees to report such complaints. Therefore, it is true that audit committees of publicly traded companies must establish whistleblowing mechanisms within the company.

Audit Committees of Publicly Traded Companies Must Establish Whistleblowing Mechanisms