Audit Committee requirements ensure independent-majority oversight of auditors, controls, related-party transactions, and vigil mechanism. The Act mandates an Audit Committee for listed and prescribed companies, composed of at least three directors with an independent director majority and financially literate members; existing committees must be reconstituted within one year. The Board must specify written terms of reference covering auditor appointment and independence, audit effectiveness, examination of financial statements, related party transactions, inter corporate loans and investments, valuation, internal financial controls and risk management, and monitoring use of public funds. The committee may investigate, obtain external advice, access records, and hear auditors and key managerial personnel without granting them a vote. A disclosed vigil mechanism with safeguards and access to the Audit Committee Chairperson is required.