It is regarded as best practice in regard to the composition of audit committees to
A) have an executive director as chairperson.
B) have the external auditor as a member
C) have the internal auditor as a member.
D) none of the above are regarded as best practice in regard to the composition of audit committees

Question

Quizplus · Accepted Answer

Best practices for the composition of audit committees typically emphasize independence from the company's day-to-day management. This means that having an executive director as chairperson, or having the external or internal auditor as members, would conflict with the principle of independence. The audit committee should be independent to effectively oversee and ensure the integrity of financial reporting.

It Is Regarded as Best Practice in Regard to the Composition