Which of the following is NOT one of the audit committee's responsibilities?

• A. Monitor the integrity of the financial statements.
• B. Review all financial reporting judgments.
• C. Review whistle-blowing and compliance processes.
• D. Review and monitor the external audit process

Answer: (B)

Audit committee oversight focuses on safeguarding the reliability of financial reporting, the independence of the external auditor, and the effectiveness of controls. The idea being tested is that the committee does not review every single financial reporting judgment; it concentrates on significant or material judgments and estimates that could affect the statements or disclosures. This targeted focus helps ensure that management has applied appropriate accounting policies and supported estimates with evidence, while avoiding the impractical task of evaluating every minor decision. The other responsibilities—ensuring the financial statements' integrity, overseeing whistle-blowing and compliance processes, and monitoring the external audit—fit squarely within the committee’s remit because they relate to governance, ethics, and the overall quality and credibility of the financial reporting process.