The audit committee of the board of directors
A)is usually chaired by the CFO.
B)conducts testing of controls on behalf of the external auditors.
C)provides a check and balance on management.
D)does all of the above.

Question

Quizplus · Accepted Answer

The audit committee of the board of directors provides a check and balance on management, ensuring that financial reporting and internal control systems are effective and reliable. The committee is independent of management and is made up of members of the board of directors who have relevant financial expertise. They review financial statements, oversee the external audit process, and make recommendations to improve the financial reporting process. The committee is not usually chaired by the CFO and does not conduct testing of controls on behalf of the external auditors.

The Audit Committee of the Board of Directors