audit
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An audit committee is a group of individuals who are responsible for overseeing the company’s financial records and reports. In most cases, an audit committee is made up of three members: one member from the management team, one independent member not affiliated with the company in any way, and one “outside” director with no personal or professional ties to the company. The goal of this committee is to provide oversight on all financial matters that affect the public perception of a company’s fiscal health. The audit committee has a number of responsibilities that they are expected to fulfill, such as: reviewing and approving the company’s annual audited financial statements; examining any operational problems or risks identified in periodic internal audits; performing due diligence on major transactions (such as mergers) involving outside parties. In recent years, an increasing amount of regulatory pressure has been placed on public companies to ensure their compliance with certain standards for good governance practices. For example, NASDAQ requires all listed companies meet its requirements for audit committees – including specific qualifications like education levels – before it will list them on the exchange. A key responsibility of this committee is ensuring that external auditing firms have access to information necessary to perform comprehensive reviews and evaluations about how well management

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