Day: November 7, 2025

Which ONE of the following statements about audit committees is incorrect?

Select ONE answer:

1. At least 50% of the members of an audit committee must be non-executive directors
2. Listed companies are required to have an audit committee
3. Audit committees are considered to be good practice for all large companies
4. Audit committees are an important aspect of a company’s control environment 

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct => is incorrect as all members of an audit committee must be non-executive directors.
2. Not correct
3. Not correct
4. Not correct

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