An audit is an independent examination of financial information of an organization. Audit helps us to detect errors and frauds at early stage and gives true views about financial information. This study is based on secondary data which is collected from annual audited reports of the firms. Regression method is used for analysis; SPSS & MS Excel is tools of analysis. Conclusion of the study is, there is positive effect of an audit committee on firm’s profitability ratio and on firm’s performance.