AUDITING+ASSURANCE SERVICES (LL)
11th Edition
ISBN: 9781266448119
Author: MESSIER
Publisher: MCG
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Question
Chapter 3, Problem 3.20MCQ
To determine
Concept Introduction:
Audit committee is established by the management of the client. This committee deals with the auditors and oversight the financial reporting process. Audit committee contains representative of the organization as its members.
To choose: The correct option showing members of audit committee.
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Students have asked these similar questions
Audit committee activities and responsibilities includewhich of the following?a. Selecting the external audit firm.b. Approving corporate strategy.c. Reviewing management performance and determiningcompensation.d. All of the above.e. None of the above
According to the changes in financial reporting, which of the following are publicly traded companies required to communicate with the
external auditors and ensure that they are able to effectively perform their work?
Multiple Choice
Board of directors
Audit committee of the board of directors
Audit committee of the management
CEO and corporate officers
The internal auditing staff of a large corporation usually reports to a committee of the board of directors, to a member of the top management group, or
both.
True or False
True
False
Chapter 3 Solutions
AUDITING+ASSURANCE SERVICES (LL)
Ch. 3 - Prob. 3.1RQCh. 3 - Prob. 3.2RQCh. 3 - Prob. 3.3RQCh. 3 - Prob. 3.4RQCh. 3 - Prob. 3.5RQCh. 3 - Prob. 3.6RQCh. 3 - Prob. 3.7RQCh. 3 - Prob. 3.8RQCh. 3 - Prob. 3.9RQCh. 3 - Prob. 3.10RQ
Ch. 3 - Prob. 3.11RQCh. 3 - Prob. 3.12RQCh. 3 - Prob. 3.13RQCh. 3 - Prob. 3.14RQCh. 3 - Prob. 3.15RQCh. 3 - Prob. 3.16MCQCh. 3 - Prob. 3.17MCQCh. 3 - Prob. 3.18MCQCh. 3 - Prob. 3.19MCQCh. 3 - Prob. 3.20MCQCh. 3 - Prob. 3.21MCQCh. 3 - Prob. 3.22MCQCh. 3 - Prob. 3.23MCQCh. 3 - Prob. 3.24MCQCh. 3 - Prob. 3.25MCQCh. 3 - Prob. 3.26PCh. 3 - Prob. 3.27PCh. 3 - Prob. 3.28PCh. 3 - Prob. 3.29PCh. 3 - Prob. 3.30PCh. 3 - Prob. 3.31PCh. 3 - Prob. 3.32P
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Similar questions
- An audit committee isa. Composed of internal auditors.b. Composed of members of the audit team.c. Composed of members of a company’s board of directors who are not involved in theday-to-day operations of the company.d. A committee composed of persons not associating in any way with the client or the boardof directors.arrow_forwardAccording to the Institute of Internal Auditor's position paper on the three lines corporate governance model, which group is responsible for owning risks and developing corrective measures and internal controls to mitigate business and IT-related risks: a) first line b) second line c) third line d) Internal audit, at the direction of the Audit Committeearrow_forwardGovernance issues include the following except; Select one: O a. Rights and treatment of shareholders b. Role of stockholders O c. Responsibilities of the board O d. Disclosure and transparencyarrow_forward
- Audited financial statements are prepared by: Management O Company Salesmen O Directors Auditorsarrow_forwardFinancial statements of public companies are required to be audited by ______. an independent certified public accounting firm the Audit Committee of the Board of Directors the Chief Financial Officer all of the above none of the abovearrow_forwardWhich is the party that plays the central role in the due diligence process of a corporate proposal? Securities Commission. O Reporting Accountant. O Directors of the Applicant or Issuer. Principal Adviser.arrow_forward
- The authority to appoint first independent auditor is vested to __________ a. The shareholders b. The board of directors c. The management d. The Central Governmentarrow_forwardTrue or False Independent Auditor is responsible for preparing the financial statements, establishing and maintaining adequate internal control over financial reporting (ICFR), and evaluating the effectiveness of ICFR. * Under Sarbanes–Oxley Section 301 public company audit committees are directly responsible for the appointment, compensation, and oversight of the work of any registered public accounting firm employed by their company. * Auditors are required by the Security and Exchange Commission to report to the audit committee of the publicly-traded company all alternative treatments of financial information within generally accepted accounting principles that have been discussed with management officials. * CFO and the audit committee depend heavily on one another * Included in the Environment disclosures are the risks and opportunities due to climate change, procurement practices with respect to local suppliers, and anti-corruption *arrow_forwardQuestion: In corporate governance, what is the primary function of an audit committee? A) Financial statement preparation B) Internal control evaluation C) Marketing strategy development D) Employee training and developmentarrow_forward
- g. In general, internal auditors' independence will be greatest when they report directly to the: Multiple Choice O Financial vice president. Corporate controller. Audit committee of the board of directors. Stockholders.arrow_forwardWhich of the following is NOT a dimension of corporate governance: Select one: a. Suppliers b. Board of directors c. Auditors d. Shareholdersarrow_forwardThe key independent membership with the experience, skills, commitment and understanding focus of the Audit Committee (AC) in the Corporate Governance framework is "to assist the Board in the management of business risks and internal controls". ACs will help to enhance standards of corporate governance only if they include truly of the business. Briefly describe the essential attributes for an effective Audit Committee.arrow_forward
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