To enhance the independence of both the internal and external audit functions, audit committees should be composed of:
A) A rotating subcommittee of the board of directors or its equivalent.
B) A combination of external members of the board of directors and company officers.
C) Members from all important constituencies, specifically including representatives from banking, labor, regulatory agencies, shareholders, and officers.
D) Only external members of the board of directors or other similar oversight committees.

Question

Quizplus · Accepted Answer

Audit committees should be composed of only external members of the board of directors or similar oversight committees to ensure independence and objectivity in the audit process.

To Enhance the Independence of Both the Internal and External