An audit committee
A) is composed only of an organization's shareholders.
B) should be primarily composed of only external board members (a NYSE requirement).
C) ideally should be composed only of members who are also high-level executives in the organization.
D) ideally should report directly to the controller.

Question

Quizplus · Accepted Answer

NYSE regulations require that audit committees be composed primarily of external board members, with at least one member having expertise in financial reporting. This helps to ensure impartiality and independence in the committee's oversight of financial reporting and auditing processes.

An Audit Committee