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CISA QUESTION #1741
Question 1
Which of the following statements about the audit committee is NOT accurate?
  • Senior executives inside the organisation oversee and direct the audit committee, assigning it compliance-related responsibilities.✔️
  • The audit committee possesses the authority to hire and terminate executives, with particular focus on external auditors and senior management.
  • The audit committee is composed of board members and has the authority to engage external auditors, who may meet with the committee independently on a quarterly basis.
  • The audit committee gives senior executives a confidential forum through which complex problems can be raised and solutions explored.
Correct Answer Explanation
The audit committee does NOT answer to, and is NOT overseen by, internal executives. Rather, it is the audit committee — typically composed of independent board members — that exercises oversight over executive management. It provides independent governance, engages and dismisses external auditors, and gives executives a confidential channel for escalating problems. The claim that executives 'oversee' the audit committee fundamentally inverts the correct governance relationship.