Yes, undoubtedly the audit committee is an important part of the corporate governance structure of large and listed organisations.The concept of audit committee was recognised in 1940 in United States of America, when investigation was made in the context Corporate investigation on the Recommendation of security exchange Commission.When we talk about role of audit committee in respect to corporate governance mechanism, we find that audit committee is responsible for financial reporting and disclosure result along with internal control processes and risk management system. The audit committee is helpful in appointment compensation and oversight of any registered public accounting company employed to perform various audit services.The audit committee can be utilised to improve corporate governance mechanisms as follows-(1) The audit committee must pre approve non-audit services for the issuer and all of its consolidated subsidiaries whether those subsidiaries are separate issuers or not.(2) It should be responsibility of the company to report to the audit committee all critical accounting policies and practices to be used, with full transparency.(3) Some members of committee must be a member of the board of directors for maintenance of independency.(4) Some members of audit committee must have knowledge finance and legal framework related to business activities and corporate governance.(5) Audit committee should be given independent authority to arrange various resources and other experts for smooth activities in the corporate sector.(6) Each issuer must provide appropriate funding to the audit committee to work smoothly without any financial problems.