ACCA BT · Chapter 4 · Question 3 of 11
Which board committee is normally responsible for monitoring the integrity of the financial statements and overseeing the relationship with the external auditor?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) The audit committee
Explanation
The audit committee, made up of independent non-executive directors, reviews financial reporting, internal controls and the internal audit function, and oversees the appointment, independence and work of the external auditor. The remuneration committee sets executive pay and the nomination committee leads board appointments.
More Corporate governance and social responsibility MCQs
- Q5A 'comply or explain' approach to corporate governance is characteristic of which type of regime?
- Q6Which of the following would most clearly threaten the independence of a non-executive director?
- Q7Carroll's pyramid of corporate social responsibility identifies four levels. Which level forms the base of the pyramid?
- Q8A company voluntarily funds a scholarship scheme for students from deprived areas, even though it has no legal obligation to do so and…
- Q9Which view of corporate social responsibility argues that the only social responsibility of a business is to maximise profits for its…