I am confused.
Please help !!!!
In BISK2012, there is the following question.
====================================================
Which of the following would be an important responsibility for a board of directors ?
a) Performing performance evaluations of lower level staff
b) Participating in daily, routine decision
c) "Rubber stamp" management's judgements
d) Engaging the external auditor
Answer is d), explaining just as below.
"An important responsibility for a board of directors is engaging the external auditor."
====================================================
However, to my understanding, "Appointment, compensation, and oversight of the external auditors is the responsibility of Audit Committee, not Board of Directors".
Why is the answer d) ?
Someone, please let me know.
Thanks