Which of the following represents the subset of board of directors that acts as a direct contact between stockholders and the independent accounting firm?
A)External auditors
B)Internal audit staff
C)Audit committee
D)Stockholders' representative

Question

Quizplus · Accepted Answer

The audit committee is a subset of the board of directors that acts as a direct contact between stockholders and the independent accounting firm. They oversee the financial reporting process and internal controls of the company, as well as the work of the external auditors. Choice A (external auditors) is incorrect as they are not part of the board of directors. Choice B (internal audit staff) is incorrect as they do not act as a direct contact between stockholders and the independent accounting firm. Choice D (stockholders' representative) is incorrect as they are not necessarily part of the board of directors and may not act as a direct contact between stockholders and the independent accounting firm.

Which of the Following Represents the Subset of Board of Directors