Which body is primarily responsible for ensuring auditing independence?

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Multiple Choice

Which body is primarily responsible for ensuring auditing independence?

Explanation:
Auditing independence is safeguarded by the audit committee, a subset of the board responsible for overseeing financial reporting and the external audit. This committee selects and hires the external auditor, approves audit fees, and monitors the auditor’s independence and objectivity. The auditors report to the audit committee (not to management), which helps ensure they can perform their work without management influence or conflicts of interest. The committee also pre-approves non-audit services to maintain independence. Other committees handle compensation, nominations, or risk, but they do not oversee the external audit and its independence.

Auditing independence is safeguarded by the audit committee, a subset of the board responsible for overseeing financial reporting and the external audit. This committee selects and hires the external auditor, approves audit fees, and monitors the auditor’s independence and objectivity. The auditors report to the audit committee (not to management), which helps ensure they can perform their work without management influence or conflicts of interest. The committee also pre-approves non-audit services to maintain independence. Other committees handle compensation, nominations, or risk, but they do not oversee the external audit and its independence.

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