How do audit committees function?

Can you explain how audit committees function in organizations?

Audit committees are responsible for overseeing financial reporting, internal controls, and the audit process. They ensure transparency and accountability.

What are the key responsibilities of an audit committee?

Key responsibilities include reviewing financial statements, monitoring compliance with laws, and liaising with external auditors.

How often do audit committees meet?

Typically, audit committees meet quarterly, but they may meet more frequently if needed, especially during financial reporting periods.

Who usually sits on an audit committee?

Members are usually independent board members with financial expertise, ensuring objectivity and proper oversight.

What challenges do audit committees face?

Challenges include managing complex regulations, ensuring effective communication with auditors, and addressing potential conflicts of interest.