An audit committee is a subcommittee of the board of directors that is responsible for the financial reporting and disclosure process.Members typically must be independent of management, meaning they do not receive any compensatory fee, other than for service on the audit committee.The audit committee is directly responsible for the appointment, compensation, and oversight of the work of any registered public accounting firm employed by the company.The audit committee must preapprove all audit and nonaudit services provided by its auditor.The audit committee must establish procedures for, and design the treatment of, internal complaints received regarding the company (ie. the whistleblower hotline).Each audit committee member must have the authority to engage independent counsel or other advisors in order to carry out its duties.. Improve your financial management. The audit committee focuses on the financial management and reporting of the company. This group provides a high level of specific expertise in this critical area of your company
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