What Is an Audit Committee and Why Does It Matter?
Abdullah Al-Kubaish explains that the audit committee is a subcommittee of the board of directors, responsible for overseeing internal and external audit processes, the integrity of financial reports, and the internal control system. Its effective presence strengthens investor confidence and reduces the risks of financial fraud.
Key Topics of the Conversation
- Defining the audit committee and the requirements for forming it under Saudi governance regulations
- The core responsibilities of the committee: overseeing audit and financial reporting
- The competencies and qualifications required in audit committee members
- The relationship between the audit committee, the internal auditor, and the external auditor
- How the committee handles risk management and compliance
- The impact of digital transformation and artificial intelligence on the work of audit committees
- The most prominent challenges: independence, competence, and pressure from executive management
- The future of audit committees amid the evolution of global governance standards
Corporate Governance in the Saudi Context
With the evolving requirements of the Capital Market Authority (CMA) and the directives of Vision 2030 toward raising transparency standards in listed and unlisted companies, effective audit committees have become an institutional necessity rather than a regulatory luxury.
