Audit committee

A committee of a company's board of directors that is responsible for reviewing the integrity and transparency of the company's financial reporting framework, including the internal audit function.

The ASX Listing Rules require certain large listed companies to have an audit committee (see ASX Listing Rule 12.7). The ASX Corporate Governance Council's Corporate Governance Principles and Recommendations (4th edition) (ASX Recommendations) recommend that listed Australian companies have an audit committee (ASX Recommendation 4.1(a)).

The duties of an audit committee include:

For more information about audit committees, see Practice note, Audit committees. For a standard form audit committee charter, see Standard document, Audit committee charter.

For a guide to Practical Law's key resources on audit committees, including links to those resources, see Toolkit, Board committees.