Audit Committee

A committee set up in most publicly-held companies as part of a good corporate governance structure. Committee members are normally drawn from members of the Company's board of directors who are independent or outside directors. Responsibilities of the audit committee typically include: overseeing the financial reporting and disclosure process, monitoring choice of accounting policies and principles, monitoring internal control and internal audit process, oversight of regulatory compliance, ethics, and whistleblower hotlines, oversight of risk management and overseeing hiring and performance of the external auditors.

Over the years, various initiatives to strengthen and increase the responsibilities of audit committees have been made by regulators to prevent major corporate frauds similar to the WorldCom case

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16.01.2007. 22:25