The business judgment rule applies to audit committee acts in each of the following instances except for:

Question

Quizplus · Accepted Answer

The preparation of the audit report is the responsibility of the auditor, not the audit committee. The business judgment rule applies to the decisions made by the audit committee in matters related to hiring the auditor, approving audit services, and responding to deficiencies in internal controls.

The Business Judgment Rule Applies to Audit Committee Acts in Each