TradeAlmanac
Sign in

Audit committee

The board committee responsible for financial reporting, internal control and the relationship with the external auditor.

How to read the number

It acts as a buffer between management and the auditor: selecting the auditor and debating contentious estimates move out of executive reach.

When the metric lies

Having a committee is a formal marker. What it actually considered is visible in the governance report, not in the fact of its existence.

Also known as: audit committee

Related terms