According to the Standards which of the following is not a responsibility of the audit committee
A group comprising a company’s directors who are responsible for supervising the process of financial reporting Show
What is an Audit Committee?An audit committee is a sub-group of a company’s board of directors responsible for the oversight of the financial reporting and disclosure process. To be successful, the audit committee should be aware of the processes and internal controls in the organization. The audit committee must coordinate with the management team, independent auditor, and internal auditors to monitor the choice of accounting policies and principles and to ensure compliance with laws and regulations. Audit Committee RegulationsAs mandated by the Sarbanes-Oxley Act of 2002, the US Securities and Exchange Commission (SEC) adopted rules and requirements that a company needs to fulfill to get its securities listed on a national exchange. The requirements include the following:
Roles and Responsibilities of an Audit Committee
Key Takeaways
More ResourcesCFI is the official provider of the Commercial Banking & Credit Analyst (CBCA)™ certification program, designed to transform anyone into a world-class financial analyst. To keep learning and developing your knowledge of financial analysis, we highly recommend the additional resources below:
Which of the following is not a responsibility of the audit committee?Which of the following is not a responsibility of audit committees? Relations with the independent auditor.
Which of the following is the responsibility of audit committee?Controls over financial reporting, information technology security and operational matters fall under the purview of the committee. The audit committee is responsible for the appointment, compensation and oversight of the work of the auditor. As such, CPAs report directly to the audit committee, not management.
Which of the following is not a responsibility of the audit committee of a corporation with securities registered with the SEC?Planning and approving the audit plan for external auditors is not the responsibility of the audit committee registered under the SEC of the United States.
What is the role of audit committee in risk management?The Audit Committee is responsible for oversight of the institution's control, governance and risk management. Furthermore, the Committee should provide the Accounting Officer / Authority with independent counsel, advice and direction in respect of risk management.
|