Julia is a member of a professional accountancy body who works in industry at KiwiCorp plc, a listed company. The company is experiencing difficulty meeting the expectations of the market, and Julia has been told by the board of directors that the company must meet its optimistic profit targets at the year end. To achieve this target and for good corporate governance practice KiwiCorp is to set an active audit committee.
Which of the following statements about audit committee is NOT correct?
A . At least 50% of the members of an audit committee must be non-executive directors
B . Listed companies are required to have an audit committee
C . Audit committees are considered to be good practice for all large companies
D . Audit committees are an important aspect of a company’s control environment
Answer: A
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