The audit committee of the board of directors is composed of
A)officers of the company.
B)inside directors of the company.
C)outside directors of the company.
D)all of the above

Question

Quizplus · Accepted Answer

The audit committee of the board of directors is composed of outside directors of the company. This is because outside directors, who are not employed by the company or affiliated with it in any other way, are more likely to provide independent oversight and objectivity in the company's financial reporting processes. A) is incorrect because officers of the company are insiders and are not on the audit committee, B) is incorrect because inside directors are also insiders and may not be as independent in their oversight.

The Audit Committee of the Board of Directors Is Composed