Correct Answer:
D. Overseeing financial reporting, internal control and the audit process on behalf of the board
An audit committee is a board committee, usually of non-executive directors, that oversees financial reporting and audit.
November 13, 2026 · Accounting and Finance MCQs, Auditing MCQs
An audit committee is mainly responsible for:
Related MCQs
A cost driver is:
A.
A factor that causes the cost of an activity to change
B.
A person who drives the delivery vehicle
C.
A fixed cost per unit
D.
A sunk cost
Correct answer is:
A. A factor that causes the cost of an activity to change
Do you agree with this answer?
An auditor holding shares in the audited client creates which type of threat?
A.
Self-interest threat
B.
Advocacy threat
C.
Familiarity threat
D.
Intimidation threat
Correct answer is:
A. Self-interest threat
Do you agree with this answer?
The main objective of government accounting is to:
A.
Maximize profit for the government
B.
Reduce the number of audits
C.
Provide accountability and stewardship over public resources
D.
Help private firms prepare tax returns
Correct answer is:
C. Provide accountability and stewardship over public resources
Do you agree with this answer?
Which of the following is an adjusting event after the reporting period?
A.
A fire destroying a warehouse after year end
B.
Announcement of a major acquisition after year end
C.
A fall in market value of investments caused by events after year end
D.
A court case settled after year end confirming an obligation that existed at the reporting date
Correct answer is:
D. A court case settled after year end confirming an obligation that existed at the reporting date
Do you agree with this answer?
Treasury bills (T-bills) are:
A.
Long-term bonds with 30-year maturity
B.
Short-term government securities issued at a discount
C.
Shares of public companies
D.
Foreign exchange reserves
Correct answer is:
B. Short-term government securities issued at a discount
Do you agree with this answer?
Regularity audit in the public sector comprises:
A.
Performance audit only
B.
Financial audit and compliance audit
C.
Tax audit only
D.
Environmental audit only
Correct answer is:
B. Financial audit and compliance audit
Do you agree with this answer?
Leave a Reply