Which of the following is commonly found as a board committee in many governance structures?

• A. Audit Committee
• B. Sustainability Committee
• C. Marketing Committee
• D. Employee Welfare Committee

Answer: (A)

Boards create committees to focus on areas that require dedicated, independent oversight. The Audit Committee is the most common because it handles the backbone of governance: financial reporting, internal controls, risk management, and the relationship with external auditors. This independent group reviews and challenges the company’s financial statements, ensures compliance with laws and regulations, and supports transparency for investors. By regularly meeting with internal and external auditors, the committee helps maintain the integrity of financial disclosures and strengthens overall accountability.

Other options may exist in some organizations, but they are not as universally established at the board level. Sustainability, marketing, or employee welfare committees can appear in different governance structures or be embedded within management, rather than as standard, standing board committees.