What is an Audit Committee?
An audit committee is a specialized governing body within a company. Both internal and external auditors report their findings to the audit committee. It is the responsibility of the committee to provide direction, scope, and support to the auditors as they carry out their work. An audit is a detailed review of the transactions and business processes of a company. The audit committee has four main functions: select the audit firm, provide guidance to auditors, review audit report and inform the company board of directors of the results of the audit. The committee is separate from the regular governing boards in order to ensure a fair and unbiased audit review. All publicly traded companies are required to issue audited financial statements each year. Selecting an audit firm is the sole responsibility of the audit committee. It must define the scope of work, the types of audits that will be performed, and the frequency of the audits. The standard process is to issue a request for propos
