The audit committee

Question

The audit committee

Quizplus · Accepted Answer

The audit committee typically consists of non-executive directors of the Board of Directors who oversee the financial reporting process and ensure the accuracy and integrity of financial statements. They are appointed to serve as an independent check and balance to management and report their findings to the Board of Directors. They may also report to shareholders at the annual general meeting, but this is not their primary role. Choice B is incorrect as major shareholders may have a conflict of interest and lack independence required for the audit committee. Choice D is incorrect as there is an audit committee for most listed companies.

The Audit Committee