The duties of an audit committee are typically described in a committee charter, often available on the entity's website. * Discussing risk management policies and practices with management. * Overseeing the performance of the internal audit function. * Oversight of regulatory compliance, ethics, and whistleblower hotlines. * Overseeing hiring, performance and independence of the external auditors. * Monitoring choice of accounting policies and principles. * Overseeing the financial reporting and disclosure process. Responsibilities of the audit committee typically include: ] The Board's role is better described as oversight or monitoring, rather than execution. Not for profit entities may also have an audit committee.īoards of Directors and their committees rely on management to run the daily operations of the business. Many audit committees also have oversight of regulatory compliance and risk management activities. The role of audit committees continues to evolve as a result of the passage of the Sarbanes-Oxley Act of 2002. Audit committees are typically empowered to acquire the consulting resources and expertise deemed necessary to perform their responsibilities. An audit committee of a publicly-traded company in the United States is composed of independent and outside directors referred to as non-executive directors, at least one of which must be a financial expert.
Committee members are drawn from members of the Company's board of directors, with a Chairperson selected from among the members. In a publicly-held company, an audit committee is an operating committee of the Board of Directors, typically charged with oversight of financial reporting and disclosure.
0 kommentar(er)
