As generally conceived,the audit committee of a publicly held company should be made up of
A) Representatives of the major equity interests (preferred stock, common stock).
B) The audit partner, the chief financial officer, the legal counsel, and at least one outsider.
C) Representatives from the client's management, investors, suppliers, and customers.
D) Members of the board of directors who are not officers or employees.

Question

Quizplus · Accepted Answer

The audit committee of a publicly held company should be made up of members who are independent of the company and its management. These members should be appointed from among the board of directors, but should not be officers or employees of the company. Choice D is the only option that meets this requirement.

As Generally Conceived,the Audit Committee of a Publicly Held Company