From an internal control perspective, an audit committee is primarily associated with:

The audit committee plays a crucial role within the governance structure of an organization, primarily functioning as a subgroup of the governing body, such as the board of directors. Its purpose is to provide oversight of the organization’s financial reporting, compliance, and internal control processes.

The audit committee enhances the integrity of financial reporting and ensures that management is accountable for the accuracy and completeness of financial statements. By being part of the governing body, the audit committee helps to bridge the gap between management and independent auditors, facilitating communication and ensuring that the board is informed about the organization's financial health and any potential risks.

The connection to the governing body is essential, as the audit committee operates independently from management in terms of its audit-related responsibilities. This independence is critical in establishing an objective oversight mechanism that can effectively monitor and challenge management's practices, ensuring that internal controls are functioning as intended and that any irregularities are addressed.

In summary, the audit committee's primary association with the governing body underscores its role in providing oversight, promoting transparency, and enhancing the organization’s internal control framework.