A committee appointed by a company's board of directors to assist in the supervision of the company's internal operations, preparation of financial reports, internal audit system and implementation, and information disclosure, to ensure transparency and accuracy, to enhance the company's efficiency and to build the confidence of its investors, customers and creditors. The SET regulations require an audit committee of a listed companies to have at least 3 members (who are company directors), at least one of whom must be knowledgeable in accounting or finance. An audit committee member is required to be independent, having no direct or indirect financial interest or executive position in the company, its subsidiaries, or its major shareholders. Also, an audit committee member is not allowed to be related to or have any family relationship with the company's management or its major shareholders. The SET also has its own Audit Committee in place.
A committee of the Board of Directors consisting of a majority of independent (non-executive) directors, responsible for selecting and overseeing the work of outside auditors and other audit activities. The definition of an independent director may vary from one market to another (see paragraph 16, Section IV above).