Illustrative Audit Committee Charter

Audit committees that have the scope of their responsibilities (the “WHAT”) and how those responsibilities are carried out (the “HOW”) set forth in a written charter are more likely to play an effective role in overseeing a company’s financial reporting process. The following Illustrative Audit Committee Charter is intended as an example to assist the audit committee in constructing its own company-specific1 charter that will be used as a working document or practical roadmap to outline its general and specific responsibilities and required duties. The charter should be assessed continually, but at least annually, to ensure that it captures and portrays the role of the audit committee accurately.
BDO has developed the following practice aid in conjunction with other BDO audit committee resources, including but not limited to the Audit Committee Requirements Practice Aid, available within the BDO Center for Corporate Governance and Financial Reporting, applicable exchange listing standards and SEC regulatory requirements, consideration of widely available audit committee charters and tools, and our knowledge and experience in working with both public company audit committees and those charged with governance at private companies.