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An audit committee is a committee comprising of non-executive directors which is able to view a company’s affairs in a detached and independent way and collaborate effectively between the main board of directors and the external auditors.
Disadvantages of audit committees: An audit committees have the following disadvantages:• fear that their purpose is to catch management out• non-executive directors being overburdened with detail• a ‘two-tier’ board of directors• additional cost in terms, at least, of time involved.
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