For many years the financial and accounting community has recognized the importance of the use of audit committees and has endorsed their for- mation. By now the use of audit committees has become widespread. Independent auditors have become increasingly involved with audit com- mittees and consequently have become familiar with their nature and function. Required:

a. Describe what a p-968n audit committee is.

b. Identify the reasons why audit committees have been formed and are currently in operation.

c. Describe the functions of an audit committee. (AICPA, adapted)