The U.S. national stock exchanges require listed companies to have an independent audit committee. Read the Requirement a. Describe an audit committee. Requirement c. What are the typical functions performed by an audit committee? (Select six items apply.) The functions of an audit committee may include the following: A. Approve interim financial reports to shareholders after they are approved by the board of directors. B. Prepare the independent auditor's overall audit plan's general audit procedures based off of the indpendent auditor's scope. C. Review the independent auditor's evaluation of the company's internal controls. D. Participate in the selection and establishment of accounting policies; review the accounting for specific items or transactions as well as alternative treatments and their effects. E. Determine the impact of proposed pronouncements by the accounting profession or regulatory bodies to determine if legal issues might arise. F. Approve the language in the independent auditor's management letter by providing feedback and providing documentation to support any negative comments. G. Review the annual financial statements before submission to the full board of directors for approval. H. Review the reports of internal audit staff. I. Review independent auditor's observations of financial and accounting personnel. J. Meet with the independent auditor and discuss any questions in the auditor's engagement letter, excluding fee arrangements set by the board. K. Review the company's accounting, financial, and operating controls. L. Assist in selecting the company's scope of the audit engagement. Requirement e. Describe the nature of the audit firm's communications with the audit committee regarding independence issues. For public companies, the require(s) a CPA firm, before its selection as the company's auditor, to describe to become known. If the CPA firm is selected, these communications This allows any to become known. If the CPA firm is selected, these communications The criticism of audit committees has been made by There validity to the comment. At the same time, audit committees the cost of a smaller audit firm is significantly less than a large firm, assuming equal quality, the audit committee use the less expensive firm. The U.S. national stock exchanges require listed companies to have an independent audit committee. Read the Requirement a. Describe an audit committee. Requirement c. What are the typical functions performed by an audit committee? (Select six items apply.) The functions of an audit committee may include the following: A. Approve interim financial reports to shareholders after they are approved by the board of directors. B. Prepare the independent auditor's overall audit plan's general audit procedures based off of the indpendent auditor's scope. C. Review the independent auditor's evaluation of the company's internal controls. D. Participate in the selection and establishment of accounting policies; review the accounting for specific items or transactions as well as alternative treatments and their effects. E. Determine the impact of proposed pronouncements by the accounting profession or regulatory bodies to determine if legal issues might arise. F. Approve the language in the independent auditor's management letter by providing feedback and providing documentation to support any negative comments. G. Review the annual financial statements before submission to the full board of directors for approval. H. Review the reports of internal audit staff. I. Review independent auditor's observations of financial and accounting personnel. J. Meet with the independent auditor and discuss any questions in the auditor's engagement letter, excluding fee arrangements set by the board. K. Review the company's accounting, financial, and operating controls. L. Assist in selecting the company's scope of the audit engagement. Requirement e. Describe the nature of the audit firm's communications with the audit committee regarding independence issues. For public companies, the require(s) a CPA firm, before its selection as the company's auditor, to describe to become known. If the CPA firm is selected, these communications This allows any to become known. If the CPA firm is selected, these communications The criticism of audit committees has been made by There validity to the comment. At the same time, audit committees the cost of a smaller audit firm is significantly less than a large firm, assuming equal quality, the audit committee use the less expensive firm