ABC's board of directors has considered setting up an audit committee for the first time. They decide that the audit committee should consist entirely of independent non- executive directors. The company currently has ten non-executive directors, of whom only one is an expert in financial area. The first five will serve on the audit committee for the coming year, one who appointed chairman of the audit committee will also serves as the chairman of the board. And the second five will serve on the audit committee in the second year.According to good corporate governance, which of the following statement is true?