Choice "B" is correct. Sarbanes-Oxley requires that an issuer's audit committee have at least one financial expert, or disclose why that role is not filled. The financial expert must have an understanding of GAAP and financial statements, be able to assess the application of accounting principles, have comparable experience applying accounting principles to entities that present a similar level of complexity of the issuer, and understand both internal controls and audit committee functions.
Choice "c" is incorrect. The audit committee is charged with negotiating the engagement of the external auditor and supervising their work. The auditor is accountable to the audit committee. The partner in charge of the audit firm engaged to do the audit should not be the financial expert on the audit committee.
Choice "d" is incorrect. Sarbanes-Oxley requires that the audit committee's financial expert understand the application of accounting principles to the issues representative of the complexity of the issuer but does not require specific experience in the industry. Four ways are defined in which the necessary attributes of a financial expert can be achieved: education, experience supervising a financial officer, experience overseeing auditors, or other relevant experience.
Choice "a" is incorrect. Sarbanes-Oxley does not require that the audit committee's chairman be its financial expert.