What is a company audit committee?

Audit Committee is a group of people, usually from the Board of Directors who supervise accounting procedures, financial reporting, compliance and public information. Companies that are publicly traded on the stock exchange are obliged to report and publish this financial information to shareholders by law. Usually the Committee for Audit of Company Audit will hire external consultants to help him. The obligations of the Committee on the Audit of the Company Audit include regularly planned reviews of financial reports, communication with top management to carry out new accounting procedures or regulations, and, if necessary, hiring an external consultant to carry out a special investigation if any irregular or illegal accounting activities are alleged or identified. Members of the Committee must be informed, proactive, accounitoble and willing to explore all alleged or actual accounting discrepancies and illegal activities within the organization. Audit Committees review annual and quarterThese reports, supervise compliance with laws and regulations and report on significant financial issues. The Committee on the Enterprise Audit has the power to question any dubious procedures or methods of management, especially in the area of ​​accurate accounting, risk management and financial liability.

The rules and procedures used for decision -making that affect corporation must ensure the best possible result or success while maintaining balance with the wishes and needs of shareholders in this corporation. The audit committees have been developed to reduce public confidence and shareholders in corporations. New responsibility methods, including the committees of the corporate audit, have been introduced as a way to give illegal or unprofessional activities. Members of these committees are obliged to ensure that corporations learn and follow the best accounting procedures, avoid clashes and protect the financial stability of the organization.

vnA more auditor can hire and supervise the audit committee. This auditor is usually responsible for both the Audit Committee and the Board of Directors. In the US, the Sarbanes-Oxley law requires external auditors hired by publicly traded American corporations to directly undergo the audit committee. The activities and the relationship between the Audit Audit Audit Committee and the external auditor are regulated by managing authorities as a Sec and New York Stock Exchange (NYSE). All obligations and responsibilities of the Audit Audit Audit Audit, together with any findings of external auditors, are designed to be financially responsible and to prove the relevant regulations.