Audit Committees Play an Important Role in Promoting Independence of Both

Multiple Choice

Audit committees play an important role in promoting independence of both internal and external auditors.Which of the following is the most important limitation on the effectiveness of audit committees?

A) Audit committees may have close personal and professional friendships with management.
B) Audit committee members are compensated by the PCAOB.
C) Audit committees devote their efforts to external audit concerns and do not pay much attention to internal auditing.
D) Audit committee members are required to have degrees in non-accounting fields.