- 1 Marks
AAA – L3 – SA – Q3.1 – Audit Committee Role
Question
Which of the following is NOT a role of the audit committee?
A To monitor the effectiveness of the internal audit function
B To appoint the external auditors
C To monitor the effectiveness of the external audit process
D To review the auditor’s report on the financial statements
Answer
B
Explanation:
The audit committee can make recommendations about the appointment of external auditors, but it must be the shareholders as a whole who appoint external auditors. Monitoring the internal audit function (A), the external audit process (C), and reviewing the auditor’s report (D) are all roles of the audit committee. Thus, B is the correct answer.
- Tags: Audit committee, Auditor Appointment, Corporate Governance, ICAG
- Level: Level 3
- Topic: The regulatory environment
- Uploader: Salamat Hamid