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Usefulness of having audit committee.

The first one is audit committee can improve the auditor’s independence. Audit committee is the body responsible for overseeing the company’s relations with the external auditor. Therefore, audit committee help in ensuring that there is no conflicts of interest exist that might interfere with the auditor's ability to issue its opinion on the financial statements. Thus, they may help in improving the independence of external auditor.
Next, audit committee can improve the objectivity and credibility of financial reporting. This is because, audit committee can periodically meet with the government’s chief executive and financial officers to review, monitor and direct activities. This will help in improving the maintenance of internal controls and preparation of financial reports
Furthermore, audit committee also can help to improve the communications among auditors, directors and management. They help in resolving any disagreements regarding financial reporting between management and the auditor. Thus, through this, the quality of audits and accounting functions also can be improved.
Besides that, audit committee may deter executive directors from creative accounting and illegal acts such as fraud. It is part of their role in the prevention, deterrence, and detection of fraud. Audit committee also can help in encouraging the government organization to establish an effective ethics and compliance program. In order to ensure that the appropriate fraud identification programs and control were taken place, audit committee can take part in constantly challenging the management and the auditors so that investigation are properly undertaken when fraud is detected.
Moreover, audit committee may enhance the external audit function. Audit committee helps in maintaining the auditor’s independence with those involved in managing the

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