Question

According to the 1999 COSO study, most companies that committed financial statement fraud had no audit committee or had an audit committee that met less than twice a year.

Answer 1

The 1999 COSO study found that companies committing financial statement fraud often lacked a regular audit committee meeting schedule.

Step-by-step explanation:

The 1999 COSO study found that a significant number of companies that committed financial statement fraud either had no audit committee or had an audit committee that met less than twice a year. This suggests that the lack of oversight and regular meetings by the audit committee contributed to the occurrence of financial statement fraud. An audit committee is a group of independent directors responsible for overseeing the company's financial reporting process, internal control systems, and external audits. Its primary role is to ensure the accuracy and reliability of the company's financial statements. The findings of the COSO study highlight the importance of a strong audit committee in preventing financial statement fraud and promoting good corporate governance practices.