Week 6 - What is the Audit Committee Responsible for?

Question 1

What is the first thing the audit committee is responsible for?

Answer 1

Reviewing integrity of financial statements and formal announcements on performance

Question 2

What is the second thing the audit committee is responsible for?

Answer 2

Reviewing internal financial controls and risk management systems

Question 3

What is the third thing the audit committee is responsible for?

Answer 3

Monitoring and reviewing effectiveness of internal audit function

Question 4

What is the fourth thing the audit committee is responsible for?

Answer 4

Recommendations to board on external director

Question 5

What is the fifth thing the audit committee is responsible for?

Answer 5

Monitor external auditor independence - are there any developing relationships between the company and the external auditor which could compromise their independence?

Question 6

What is the sixth thing the audit committee is responsible for?

Answer 6

Implement policy on non-audit services by external auditor

Question 7

Who is responsible for the internal control structure within a company?

Answer 7

The board of directors