Which of the following acts directs that the audit committee members should be independent members of the board of directors, not executive directors or otherwise affiliated with the issuer?
A)Sarbanes Oxley Act of 2002
B)Securities Act of 1933
C)Securities Exchange Act of 1934
D)Foreign Corrupt Practices Act of 1977

Question

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The Sarbanes Oxley Act of 2002 directs that the audit committee members should be independent members of the board of directors, not executive directors or otherwise affiliated with the issuer. It was enacted in response to several accounting scandals involving large corporations such as Enron and WorldCom. The act established stricter standards for public accounting firms, corporate governance, and the internal controls of public companies.

Which of the Following Acts Directs That the Audit Committee