In the wake of corporate scandals, the audit committee, whose prime purpose is to oversee the accounting and reporting process, has taken on increased importance.
The responsibilies of the audit committee typically include:
* overseeing the financial reporting process
* monitoring choice of accounting policies and principles
* monitoring internal control and risk management processes
* overseeing whistle blowing and complaints policies
* overseeing the hiring and performance of the external auditors, including pre-approval of non audit services provided
