Audit committee

Audit committee,

Definition of Audit committee:

  1. All U.S. publicly-traded companies must maintain a qualified audit committee in order to be listed on a stock exchange. Committee members must be made up of independent outside directors, including a minimum of one person who qualifies as a financial expert.

  2. Members of a companys board of directors (BOD) who are responsible for the conduct of internal and external auditors.

  3. A committee set up by a company or other institution to supervise the auditing of its accounts.

  4. An audit committee is one of the major operating committees of a company's board of directors that is in charge of overseeing financial reporting and disclosure.

How to use Audit committee in a sentence?

  1. Per regulation, the audit committee must include outside board members as well as those well-versed in finance or accounting in order to produce honest and accurate reports.
  2. Committee members must sign off on the company's books and take responsibility for any misreporting.
  3. An audit committee is made of members of a company's board of directors and oversees its financial statements and reporting.

Meaning of Audit committee & Audit committee Definition