Explanation:
The roles of an audit committee typically include oversight of the organization's financial statements to ensure their reasonable accuracy (III), taking measures to prevent and detect fraud or misstated errors (V), and requiring its members to be financially literate, including knowledge of basic accounting principles under frameworks like US GAAP and IFRS (I).
Statement II relates to the responsibilities of the Remuneration or Compensation Committee, while Statement IV involves the duties of the broader Board of Directors or Executive Management. Therefore, only statements I, III, and V correctly describe the roles of the audit committee.
Ultimate access to all questions.
Q.53 Which of the following are the roles of the audit committee?
I. Members must have the knowledge of basic accounting principles under US GAAP and IFRS
II. Ensuring that the remuneration of key management aligns with the goals of other stakeholders
III. Ensuring reasonable accuracy of the organization's financial statements
IV. Ensuring that management strategies are focused on economic profits
V. Ensuring that the organization has taken measures to avoid misstated errors and fraud
A
I, II and IV
B
III, IV, and V
C
I, III and V
D
II, III and IV
No comments yet.