Factors that the auditor should consider as increasing the effectiveness of the audit committee include all of the following except whether:
A) It is independent of management
B) It is comprised almost exclusively of members of management, ensuring detailed knowledge of the company's operations.
C) It asks management difficult questions.
D) It interacts regularly with internal auditors.

Question

Quizplus · Accepted Answer

The inclusion of almost exclusively members of management on the audit committee does not increase its effectiveness, as the committee should be independent and free of conflict of interest. Choices A, C, and D are all factors that increase the effectiveness of the audit committee.

Factors That the Auditor Should Consider as Increasing the Effectiveness