Panel: Herbert Chain, Larry King, and Christina Rashid
This 11th episode of Bare Bones Board Basics focuses on the audit committee, a committee of a board of directors with responsibility for the oversight of the Company’s financial reporting and disclosure process.
Every public company must have one. And it is best practice for any private company to also have one. While the role of an audit committee is less complex in the setting of a private company, it is no less important.
As noted by Corporate Compliance Insights, “[w]hether required or optional, the benefits of an independent audit far outweigh the costs because an audit helps the board of directors meet its fiduciary duty to provide objective oversight and monitoring and protect stakeholders’ interests. Additionally, an audit committee that is supported by an internal audit function links monitoring, governance, and oversight of the company with oversight of the internal control environment.”