ACCA AA · Chapter 2 · Question 9 of 10
Under good corporate governance practice, which of the following best describes the composition of an audit committee of a listed company?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Independent non-executive directors, at least one of whom has recent and relevant financial experience
Explanation
Governance codes recommend that audit committees consist of independent non-executive directors, with at least one member having recent and relevant financial experience. Executive directors such as the finance director are responsible for the figures being overseen, so their membership would undermine the committee's objectivity.
More Statutory audit, regulation and corporate governance MCQs
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