Which responsibility is assigned to the audit committee?

The responsibility assigned to the audit committee includes overseeing internal and external audit functions. This role is crucial because the audit committee ensures the integrity of financial reporting, compliance with laws and regulations, and the effectiveness of risk management processes within the organization. By providing oversight of the audit process, the committee acts as a bridge between the board, management, and auditors, facilitating communication and ensuring that audit findings are appropriately addressed.

Oversight of internal and external audit functions helps to maintain the objectivity and independence of auditors, which is essential for the integrity of financial statements and safeguarding the company’s assets. This function is a fundamental aspect of corporate governance, enhancing stakeholder trust and accountability.

In contrast, other responsibilities such as talent management, advising on executive salaries, and managing the CEO's contract pertain to different governance functions within the organization that fall outside the specific purview of the audit committee.