An audit committee must be comprised of outside directors and at least one outside financial expert.Which of the following is considered an outside director?

Question

Quizplus · Accepted Answer

An outside director is someone who is not a member of management and has no other relationship to the organization, ensuring independence and a lack of conflict of interest. B is incorrect because a consultant is not an outside director. C is incorrect because a director who is also a member of management is not an outside director. D is incorrect because a director who is also a CPA and CIO of an affiliated organization may have a conflict of interest and not be considered independent.

An Audit Committee Must Be Comprised of Outside Directors and at Least