audiitorkomitee

Audiitorkomitee, commonly known as an audit committee, is a sub‑committee of a board of directors that oversees the financial reporting and disclosure processes of an organization. The committee’s primary purpose is to provide independent oversight of accounting practices, internal controls and external audit functions.

The composition of a typical audit committee includes board members, with at least one member possessing financial literacy or accounting expertise. Members typically serve staggered terms to ensure continuity and reduce the risk of collusion.

Core responsibilities of the audit committee encompass reviewing financial statements before approval, evaluating the adequacy of internal controls, and supervising the work of external auditors. The committee also monitors risk management policies, evaluates IT security controls, and ensures compliance with corporate governance codes and regulatory requirements. In many jurisdictions, auditors provide the committee with an audit report and discuss findings in confidential meetings.

Legislative frameworks, such as the Sarbanes‑Oxley Act in the United States or the UK Corporate Governance Code, mandate the existence of audit committees for publicly listed companies. These regulations emphasize independence and subject the committee’s members to certain duties, including attendance at all board meetings and ongoing education on financial matters.

Audit committees play a critical role in safeguarding shareholder interests, enhancing transparency, and promoting confidence in corporate financial statements. Through vigilant oversight, they help deter fraud, reduce the risk of financial misstatement, and support the integrity of the market.