What is the audit committee of the board of directors of a company responsible for?
A) Hiring the auditor.
B) Preparing the financial statements.
C) The audit workpapers.
D) Obtaining evidence.

Question

Quizplus · Accepted Answer

The primary responsibility of the audit committee is to hire and oversee the work of the company's independent auditor. This helps to ensure that the financial statements are accurate and reliable.

Answer: D
 The audit committee is responsible for obtaining and reviewing evidence to support the company's financial statements, in addition to overseeing the work of the independent auditor. This evidence can come from a variety of sources, such as internal audit reports, management representations, and conversations with the auditor. The committee may also review specific accounting judgments or estimates made by management to ensure that they are reasonable and well-supported.

What Is the Audit Committee of the Board of Directors