Building a better audit committee – Start with a clear picture of its roles and responsibilities

Description

Abstract: Many nonprofits have started their own audit committees over the past decade, but have learned the hard way that good intentions aren’t enough to ensure an effective committee — both the nonprofit and committee members must fully understand the committee’s role and responsibilities. This article describes the purpose of an audit committee and its responsibilities in overseeing financial reporting and risk management and in interacting with outside auditors. A sidebar notes the importance of committee members having strong financial expertise.