Audit Committee has an acute role to play in safeguarding the reliability of financial management of the company. This Committee ensures the shareholders that the auditors, who act on their behalf, are in a position to protect their interest. It is an epitome of the parameters of probity, accountability, disclosures and transparency to maximize value for the stakeholders. Since these are the values and principles ensured by corporate governance one can say that audit committee serves as a pillar of corporate governance. An “Audit Committee” is a key element in the Corporate Governance process of any organization.