Which of the following statements is true with respect to audit committees?
A) Audit committee members should consist of members of the company's management.
B) All members of the audit committee must be financial experts.
C) The audit committee of a public company is responsible for hiring the auditor.
D) Audit committees must have a minimum of ten members.

Question

Quizplus · Accepted Answer

The audit committee of a public company is responsible for hiring the auditor. A is incorrect because audit committee members should be independent and not part of the company's management. B is incorrect because while having financial expertise is beneficial, it is not a requirement for all members of the audit committee. D is incorrect as there is no set minimum number of audit committee members, although it is recommended to have at least three members.

Which of the Following Statements Is True with Respect to Audit