ABSTRACT
Organizations with a board of directors often have various committees to facility decision-making and address matters without the need for the entire board to get involved. The audit committee (AC) is one of these committees. Since ACs assume such important and complex responsibilities, it is best if the members of the AC are independent and external to the organization. Another important feature of effective ACs is that they contain at least one financial expert. The AC should receive internal audit reports, especially those containing findings of high importance. Internal auditors report to their AC, which is also responsible for the hiring, performance evaluation, budget and oversight of the CAE, and the internal and external audit functions. Internal auditors submit reports to the AC at least quarterly, listing the audits and other projects closed, in progress, or to be initiated, and the status of previously reported findings.
