Audit Committee Law and Legal Definition

According to 15 USCS § 7201 (3), [Title 15. Commerce and Trade; Chapter 98. Public Company Accounting Reform and Corporate Responsibility] the term audit committee means--

“(A) a committee (or equivalent body) established by and amongst the board of directors of an issuer for the purpose of overseeing the accounting and financial reporting processes of the issuer and audits of the financial statements of the issuer; and

(B) if no such committee exists with respect to an issuer, the entire board of directors of the issuer.”