Lesson: The Audit Committee

This lesson provides an overview of the audit committee's responsibility for engagement acceptance in accordance with the Sarbanes-Oxley Act of 2002 (SOX 2002). It explains the requirement for a company's board of directors to establish an audit committee and illustrates the general structure of a company with a shareholder, board of directors, and various committees, including the audit committee. The lesson also highlights the audit committee's role in selecting a qualified and independent auditor, ensuring the audit is conducted in accordance with Generally Accepted Auditing Standards (GAAS), and assisting the board of directors in its oversight responsibilities.