Audit Committee review of cost audit reports: cost auditor observations must be included in committee discussions and internal control reviews. The term 'auditors' includes Cost Auditors, and the Audit Committee must examine the Cost Audit Report where cost audit has been directed; the committee should discuss the Cost Auditor's observations and consider the report's suggestions in fulfilling its duty to review internal control systems, audit scope and auditors' observations before financial statements are submitted to the Board.