The financial community has long recognized the importance of-and has endorsed forming-audit committees. For example, audit committees
Question:
The financial community has long recognized the importance of-and has endorsed forming-audit committees. For example, audit committees were first encouraged by the Securities and Exchange Commission in the 1940s, and first mandated by the New York Stock Exchange in the 1970s. Today audit committees are quite common among publicly traded corporations, and independent auditors have become increasingly involved with audit committees.
Required:
1. What is an audit committee?
2. Identify the reasons why audit committees have been formed and are used currently.
3. What are the functions of an audit committee?
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An audit committee is a subset of a companys board of directors responsible for overseeing financial reporting and disclosure processes monitoring the ...View the full answer
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