Question

select all that apply as a part of the oversight responsibility of the audit committee, which procedures strengthen internal controls? (check all that apply.) multiple select question. periodic reports describing fraud and unethical conduct are sent to the sec encourage employees to report concerns about unethical behavior discussions of risk factors with shareholders a summary of unethical conduct, follow-up and disposition is provided to those charged with governance.

Answer 1

To strengthen internal controls, the audit committee should send periodic reports to the SEC, encourage internal reporting of unethical behavior, and provide summaries of unethical conduct to governance bodies.

Step-by-step explanation:

As a part of the oversight responsibility of the audit committee, several procedures can strengthen internal controls. These include:

• Periodic reports describing fraud and unethical conduct are sent to the SEC. This increases transparency and ensures that there is an external check on the company's activities.
• Encouraging employees to report concerns about unethical behavior. This internal whistleblowing system can deter potential unethical activities by creating an environment where employees are vigilant and willing to report misconduct.
• Providing a summary of unethical conduct, follow-up, and disposition to those charged with governance. This allows the board and other governing bodies to monitor how the company handles ethical breaches and ensures accountability.

While discussions of risk factors with shareholders are important for transparency and accountability, they are more about communication than about strengthening internal controls. Therefore, they do not directly relate to the audit committee's oversight responsibility concerning internal controls.