Auditikomiteega

Auditikomiteega describes an organizational arrangement in which the board of directors forms an audit committee responsible for oversight of financial reporting, internal control, risk management, and the work of internal and external auditors. The aim is to provide independent scrutiny of financial information and to strengthen governance by reducing management influence over the reporting process.

Typical composition is three to five non-executive directors who are independent and possess accounting or financial expertise. The committee operates under a formal charter approved by the board and meets regularly. It has access to company information, management, internal audit, and external auditors, and it can seek advice from independent experts when needed.

Key responsibilities include oversight of financial statements and significant accounting estimates, monitoring internal control systems and risk management processes, supervising the internal audit function, and coordinating the external audit process, including auditor appointment and remuneration and assessing independence. It also reviews audit findings, management responses, and whistleblower channels, and ensures regulatory compliance.

Benefits include improved reliability of financial reporting, stronger risk oversight, and greater investor confidence. Potential challenges include ensuring true independence, avoiding overlap with other governance functions, securing sufficient resources, and maintaining clear roles and escalation paths.

Context: In many jurisdictions, audit committees are required for listed companies or large entities; corporate governance codes encourage their establishment, and the exact duties and composition are defined by law, regulation, and the organization's charter.