An audit committee is a group of individuals appointed by a company's board of directors to oversee and monitor the financial reporting process, internal controls, and audits. The primary responsibilities of an audit committee include ensuring that financial statements are accurate, complete, and in accordance with generally accepted accounting principles (GAAP), as well as monitoring the independence of external auditors and evaluating their performance. Additionally, audit committees may also be responsible for reviewing and approving related-party transactions, assessing risk management practices, and overseeing compliance activities within a company.