What is the role of the audit committee?

The role of the audit committee is primarily focused on overseeing the internal audit function to ensure that it operates independently and effectively. This committee typically comprises members of the board of directors, ideally with financial expertise, and is responsible for reviewing the financial reporting processes, the audit processes, and any potential compliance issues. By ensuring the effectiveness of the internal audit function, the audit committee provides oversight that promotes transparency, accountability, and accuracy in financial reporting.

The audit committee's involvement not only strengthens governance within the organization but also enhances the overall integrity of the company's operations. By ensuring that the internal audit has the authority and resources necessary to perform their duties, the audit committee supports the organization's risk management and internal control framework, ultimately leading to better financial and operational outcomes.

In contrast, the other options do not align with the primary responsibilities of an audit committee. Preparing financial statements, maintaining marketing strategies, and managing human resources fall outside the typical scope of duties handled by an audit committee, highlighting the specific and critical oversight role that this committee plays in governance.