CIMA BA4 · Chapter 6 · Question 3 of 10
Which board committee normally takes the lead in reviewing the integrity of the financial statements and the relationship with the external auditor?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Audit committee
Explanation
The audit committee monitors the integrity of financial statements, reviews internal controls and the internal audit function, and oversees the appointment, independence and effectiveness of the external auditor. Remuneration and nomination committees deal with pay and board appointments respectively.
More The board of directors and board committees MCQs
- Q5What is the main purpose of a remuneration committee composed of independent non-executive directors?
- Q6Which of the following is a primary responsibility of the nomination committee?
- Q7Which of the following is generally regarded as good practice for the remuneration of non-executive directors?
- Q8Why are board evaluations recommended by corporate governance codes?
- Q9A listed company's audit committee consists of the finance director, the chief executive and one independent non-executive director. Which…