Audit committees are necessary groups in organizations to ensure the integrity of financial reporting. The Sarbanes-Oxley Act of 2002 made it a requirement for all public companies to have audit committees, and many private and nonprofit organizations have implemented them as well. Having an effective audit committee can strengthen your organization and improve its financial credibility. Audit committees are essential components of corporate governance, so they should be formed the right way and with the right people in order to be the most effective.
