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An audit committee should:
A consist of independent non?executive directors only
B include at least one senior member of the internal audit team
C include one member from the external audit firm
D carry out a detailed review of critical elements of the balance sheetAnswer: A
Hello Sir. If he committee consists only of independent NED is it assuming that one of them would be a financial expert as well?
Yes. From the UK Corporate Governance code:
The board should establish an audit committee of independent non-executive directors…. The chair of the board should not be a member. The board should satisfy itself that at least one
member has recent and relevant financial experience. The committee as a whole shall have competence relevant to the sector in which the company operates.
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