The audit committee should report to the board of directors on which of these matters?Group of answer choicesthe use of experts by the independent auditoraudit procedures carried out by the internal auditorrecommendations for the appointment or removal of an auditoraudit procedures carried out by the independent auditor PreviousNext
Question
The audit committee should report to the board of directors on which of these matters?Group of answer choicesthe use of experts by the independent auditoraudit procedures carried out by the internal auditorrecommendations for the appointment or removal of an auditoraudit procedures carried out by the independent auditor PreviousNext
Solution
The audit committee should report to the board of directors on all of these matters. This includes:
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The use of experts by the independent auditor: The audit committee should inform the board about any external experts that the independent auditor may be using. This could impact the audit's cost, timeline, and overall approach.
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Audit procedures carried out by the internal auditor: The audit committee should also report on the work done by the company's own internal auditor. This can give the board a better understanding of the company's internal controls and risk management processes.
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Recommendations for the appointment or removal of an auditor: If the audit committee believes that a change in auditors is needed, they should bring this to the board's attention. This could be due to a variety of reasons, such as poor performance, a conflict of interest, or a need for a fresh perspective.
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Audit procedures carried out by the independent auditor: The audit committee should also report on the procedures and tests that the independent auditor is using. This can help the board understand the scope of the audit and the areas of the company that are being focused on.
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