An audit committee of a publicly traded company should be composed of: a. executive and non-executive members of the board of directors. b. the CFO and two other board members who... An audit committee of a publicly traded company should be composed of: a. executive and non-executive members of the board of directors. b. the CFO and two other board members who are also shareholders. c. the audit partner, the CFO, and a shareholder. d. members of the board of directors who are independent directors.
Understand the Problem
The question is asking about the composition of an audit committee in a publicly traded company, specifically what members should be included based on best practices or regulations.
Answer
d) members of the board of directors who are independent directors.
The final answer is d) members of the board of directors who are independent directors.
Answer for screen readers
The final answer is d) members of the board of directors who are independent directors.
More Information
The audit committee ensures corporate governance adherence and should be composed primarily of independent directors to maintain objectivity and impartiality.
Tips
A common mistake is assuming executives like the CFO are part of the audit committee, which could lead to conflict of interest.
Sources
- An audit committee of a publicly traded company should be composed of - Study.com - homework.study.com
- Listing Rule 5605 - Nasdaq - listingcenter.nasdaq.com
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