Answer: Overseeing the financial reporting process to ensure accuracy, completeness, and transparency of financial statements and disclosures.

## Explanation The correct answer is **C** because the primary responsibility of an audit committee is to oversee the financial reporting process to ensure accuracy, completeness, and transparency of financial statements and disclosures. ### Detailed Analysis: **Why C is correct:** - Audit committees are primarily responsible for financial oversight - They ensure financial statements are accurate and transparent - They monitor internal controls and external auditor relationships - They verify compliance with legal and regulatory requirements **Why A is incorrect:** - Risk identification and assessment is typically handled by risk management teams or committees, not the audit committee **Why B is incorrect:** - Reviewing and approving risk management strategies falls under the purview of senior management or dedicated risk committees **Why D is incorrect:** - Communicating executive compensation decisions is typically handled by human resources or compensation committees ### Key Points: - Audit committees focus on financial reporting integrity - Risk management responsibilities are separate from audit committee functions - The audit committee's role is crucial for maintaining stakeholder trust in financial reporting

Author: Tanishq Prabhu