Question

20) The audit committee is responsible for

A) overseeing the internal control structure.
B) overseeing the financial reporting process.
C) working with the internal and external auditors.
D) All of the above are responsibilities.

Answer 1

The audit committee is responsible for overseeing the internal control structure, overseeing the financial reporting process, and working with the internal and external auditors.

Step-by-step explanation:

The audit committee is responsible for overseeing the internal control structure, overseeing the financial reporting process, and working with the internal and external auditors.

Example 1: The audit committee ensures that the company has appropriate controls in place to safeguard assets and prevent fraud. They also review and approve the financial statements before they are presented to shareholders.

Example 2: The audit committee collaborates with both internal and external auditors to assess the accuracy and integrity of the financial reporting process.

Therefore, the correct answer is D) All of the above are responsibilities.