QUIZ MAF682 AC Roleplay 2

What is our topic about?

Which of the following is NOT a requirement for an audit committee?

• 1. At least one member must be financially literate

• The committee must meet at least four times per year

• The committee must have a majority of independent members

Which of the following is the most important factor in ensuring the effectiveness of an audit committee?

• 1. The committee's composition

• 1. The committee's communication with management

• 1. The committee's access to information

• 1. The committee's independence

Which of the following is NOT a requirement for audit committee members?

• • Financial literacy

• • Experience in the financial industry

• • Independence from management

• • A willingness to speak up

Which of the following is NOT a responsibility of the audit committee?

• • Overseeing the company's financial reporting process

• • Appointing and evaluating the external auditor

• • Reviewing the company's internal controls

• • Approving the company's dividend policy

Which of the following is NOT a way that the audit committee can ensure effective communication?

• • Holding regular meetings with management

• • Meeting with the external auditor on a quarterly basis

• • Receiving regular reports from management and the external auditor

• • Allowing management to review the audit committee's minutes

Which of the following is NOT a way that the audit committee can ensure the right composition?

• • Ensuring that there is a diversity of experience and perspectives on the committee

• • Ensuring that at least one member of the committee has financial reporting and accounting expertise

• • Ensuring that all members of the committee are independent from management

• • Ensuring that all members of the committee are willing to speak up

Which of the following is NOT a way that the audit committee can promote transparency?

• • Publishing the committee's charter

• • Publishing the committee's minutes

• • Publishing the committee's annual report

• • Publishing the committee's financial disclosures

Audit committees serve as a critical link between the organization's management, its external auditors, and its board of directors. Which of the following is NOT one of the primary responsibilities of an audit committee?

• • Overseeing the organization's external audit

• • Approving the organization's financial statements

• • Appointing the organization's external auditors

• • Ensuring that the organization has adequate internal controls in place

What is the role of audit committees in creating a fraud prevention and detection program?

• To investigate fraud when it is uncovered

• To periodically review the organization's overall financial practices

• To encourage the establishment of ethics and compliance programs

• To maintain the effectiveness of organizational control