Endurskoðunarnefndar

Endurskoðunarnefndar is the Icelandic term for an audit committee. In Iceland, like in many other countries, an audit committee is a subcommittee of a company's board of directors. Its primary role is to oversee the financial reporting process, the audit of financial statements, and the company's internal control systems. The committee typically comprises independent directors who possess financial expertise.

The responsibilities of an endurskoðunarnefnd can vary depending on the size and complexity of the company, as well as regulatory requirements. However, common duties include appointing, compensating, and overseeing the work of the external auditor. They also review the scope and results of the audit and ensure that the company maintains adequate internal financial controls and procedures. Furthermore, the committee often reviews the company's financial statements and disclosures before they are presented to the full board and made public. They also play a crucial role in managing risks related to financial reporting and compliance.

The establishment and operation of an endurskoðunarnefnd are often mandated by Icelandic company law and stock exchange regulations for publicly listed companies. This oversight function is designed to enhance transparency, accountability, and investor confidence in the financial integrity of the organization. The committee acts as a vital link between the board, management, shareholders, and the external auditors, ensuring a robust governance framework.