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An audit committee is a subcommittee of a board consisting of board members and subject matter experts, tasked with overseeing critical business areas. Key responsibilities include providing oversight on accounting and financial matters, ensuring compliance with laws and regulations, and monitoring the organization's control environment. The committee receives reports from both internal and external auditors, which assist them in fulfilling their duties effectively. By overseeing these audits, the committee ensures independence for the internal auditor, enabling them to operate without undue influence.