The Role of the Board’s Audit Committee
One of the discussions many boards have is whether or not to have committees. When they decide that they will have committees, they have to determine which ones to form and the duties they will perform. One of the choices often considered is whether or not to have an audit committee.
Certain organizations are so heavily monitored that there is little role for an audit committee. Others are financially independent and an audit committee can provide a valuable service to the board.
This article is designed to help boards which need an audit committee. It explains the role to ensure the committee is governing and not managing and at the same time are supporting the CEO identify and mitigate risks.