3-29........

b. Describe the benefits derived from preparing an engagement letter. (AICPA, adapted) 3-29 Section 301 of the Sarbanes-Oxley Act requires that public companies have an audit committee. Independent auditors are increasingly involved with audit committees. Required: a. Describe what an audit committee is. b. Identify the reasons why audit committees have been formed and are currently in operation. c. Describe the functions of an audit committee. (AICPA, adapted) 3-30 Suppose that you are the auditor of a major retail client who has reported the following income before taxes