Legal Definitions - audit committee

The audit committee is a group of people who are part of a company's board of directors. They are responsible for making sure that the company's financial reports are accurate and that the company's auditors are doing their job properly.

For example, if a company's financial statements show that they made a lot of money, the audit committee would check to make sure that the numbers are correct and that the company is not hiding anything. They would also make sure that the company's auditors are independent and not influenced by the company's management.

The audit committee is required by law for public companies in the United States. This means that companies that want to sell their stock to the public must have an audit committee. The audit committee is regulated by the Securities and Exchange Commission (SEC) and must follow certain rules to ensure that they are doing their job properly.