The correct answers are: Audit committees are part of good corporate governance; Audit committees should be staffed by non-executive directors; Audit committees liaise between external auditors and executive management.

Audit committees are part of good corporate governance (as recommended by the UK Corporate Governance Code) and they should be staffed by independent non-executive directors. Audit committees liaise between external auditors and executive management and deal with matters such as the appointment and remuneration of auditors, and auditors' reports to management.

There is no statutory requirement for large companies to establish an audit committee, although in the UK there is a requirement for listed companies to disclose the fact that they have not complied with good corporate governance recommendations. Remuneration committees are responsible for recommending directors' remuneration, not audit committees.