In corporate governance, an audit committee is responsible for overseeing financial reporting and external audits.
An audit committee is usually a committee of a company’s board of directors. Its responsibilities can include monitoring the integrity of financial statements, reviewing internal controls, overseeing the external auditor, and discussing audit findings with management and auditors.
The committee does not prepare the company’s accounts or replace the independent auditor. Management remains responsible for financial reporting, while the external auditor provides an independent opinion under the applicable auditing standards. The committee serves as an oversight and communication link.
Listing rules and corporate laws vary by country. In the United States, public-company audit committees are subject to requirements under the Sarbanes–Oxley Act and Securities and Exchange Commission rules, including provisions concerning independence and financial expertise. The exact duties can therefore differ by jurisdiction and company structure.