The members of a client's "audit committee" should be
A) members of management.
B) directors who are not a part of company management.
C) non-directors and non-managers.
D) directors and managers.

Question

Quizplus · Accepted Answer

The members of a client's "audit committee" should be directors who are not a part of company management. This is to ensure independence from management and to provide oversight and governance of the audit process. The audit committee is responsible for selecting, overseeing, and compensating the external auditor, as well as reviewing the financial statements and related disclosures. It is important that the audit committee is composed of individuals who are not involved in the day-to-day operations of the company to avoid any conflicts of interest that may arise.

The Members of a Client's "Audit Committee" Should Be