Final answer:
Not all companies are required to have an audit committee; it is generally a legal requirement for publicly-traded companies, but private or small businesses may not be mandated to establish one. The correct answer is b) False.
Step-by-step explanation:
It is false that all companies must have an audit committee. While publicly-traded companies are generally required by law and stock exchange regulations to have an audit committee, private companies and small businesses are not legally mandated to establish one unless required by their investors or partners. However, an audit committee can still be a valuable asset for small businesses in providing oversight on the company's financial reporting processes, internal controls, and compliance with laws and regulations.
The correct answer is b) False. Not all companies are required to have an audit committee. The necessity of an audit committee can vary depending on factors such as the size of the company, its industry, and its regulatory requirements. While having an audit committee is commonly practiced by many companies to ensure financial transparency and accountability, it is not a requirement for all companies.