Audit committee
An audit committee is a governance committee that commonly oversees financial reporting, internal controls, the external audit and relevant relationships with auditors. Its authority and composition depend on applicable governance requirements.
Worked example
The committee challenges management’s major estimates and discusses the auditor’s significant findings without management present when appropriate.
Common mistake
An audit committee does not take over management’s responsibility for preparing the financial statements.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AA | Direct | September 2026–June 2027 |
| ACCA | AAA (INT) | Direct | September 2026–June 2027 |
| ACCA | BT | Direct | September 2026–June 2027 |
| ACCA | SBL | Direct | September 2026–June 2027 |
| FIA | FBT | Direct | September 2026–June 2027 |