An audit committee is a specialized subcommittee of an organization's board of directors, typically composed of independent, non-executive directors. Its primary responsibilities include overseeing financial reporting integrity, evaluating the effectiveness of internal controls, and ensuring the independence and performance of external auditors. The committee reviews financial statements, accounting policies, and the selection and compensation of independent auditors to maintain transparency and accuracy in financial disclosures.

Beyond traditional financial oversight, modern audit committees have expanded their scope to address enterprise-wide risks, including cybersecurity, data privacy compliance, and regulatory adherence. They monitor the internal audit function, review risk management frameworks, and ensure the organization meets legal and regulatory requirements. By maintaining rigorous oversight standards, the audit committee plays a crucial role in safeguarding organizational reputation, fostering stakeholder confidence, and promoting accountability throughout the enterprise.