Audit committee
Definition
A sub-committee of the board of directors composed principally of independent non-executive directors, responsible for overseeing financial reporting, internal controls, and the internal and external audit functions. The forensic auditor's primary reporting line in most corporate governance frameworks.
Related terms
- Attorney-client privilege (legal professional privilege)
- A legal protection that prevents compelled disclosure of confidential communications between a lawyer and their client. In forensic audit engagements structured as...
- CISO (Chief Information Security Officer)
- The senior executive responsible for developing and maintaining the information security programme. The CISO reports to the board or a board committee...
- First-line controls
- Controls owned and operated by the business units and IT functions that process or store information. The first line is accountable for...
- Flash report (preliminary oral briefing)
- An interim communication to the audit committee or board during an active investigation, before the formal written report is ready. Used when...
- Management override
- The circumvention of established internal controls by members of senior management. A key fraud risk in any organisation because those who set...
- Second-line oversight
- The risk management and compliance functions, including the CISO office and the risk function, that set policy, monitor control effectiveness across the...
- Security steering committee
- A cross-functional management body, typically chaired by the CISO or Chief Risk Officer, that coordinates security priorities across business units, approves major...
- Three lines of defence
- A governance model that separates security responsibility into three distinct layers: operational management that owns controls (first line), risk and compliance functions...
- Whistleblower channel
- A mechanism for individuals to report suspected misconduct to the audit committee or board directly, bypassing management. Required under SOX in the...
- Work-product doctrine
- A rule protecting materials prepared by or for an attorney in anticipation of litigation. It is broader than attorney-client privilege and covers...
Explained in these topics
- Presenting Findings to Management and Audit CommitteesA sub-committee of the board of directors composed principally of independent non-executive directors, responsible for overseeing financial reporting, internal...
- Security Governance Structures and RolesA sub-committee of the board, composed largely of independent non-executive directors, that oversees financial reporting, internal controls, and risk managemen...