• Effective Audit Committee Guide

Independence – In addition to helping define WHO an audit committee member should be, independence is considered a basic continuing responsibility of an audit committee member, and each member of the audit committee must be independent and remain so under specified narrow criteria. See prior discussion on independence.

Responsibilities relating to the Independent Auditor – The audit committee should be directly responsible for the appointment, compensation, retention and oversight of the work of auditors who provide audit services to the organization (whether the services are provided by the principal auditor or another firm).

Procedures for handling complaints – The audit committee must establish procedures for the receipt, retention and treatment of complaints regarding accounting, internal accounting controls or auditing matters, including procedures for the confidential anonymous submission by employees (whistleblowers) of concerns regarding questionable accounting or auditing matters.

Authority to engage advisors – The audit committee must have the authority to engage independent counsel and other advisors as it deems necessary to carry out its duties.

Funding – The organization must provide appropriate funding for the audit committee to compensate the outside auditors and any independent counsel and advisors it employs and to fund ordinary administrative expenses of the audit committee that are necessary in carrying out its duties.

The following discussion is organized around these basic responsibilities and is somewhat expanded to encompass the fuller scope of actual audit committee responsibilities in keeping with the broader concept of oversight.
 

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Contacts

Andrea Espinola Wilson.
Andrea Wilson Managing Partner; Industry Specialty Services National Co-Leader, Nonprofit & Education Practice 703-752-2784
Adam Cole.
Adam Cole Managing Partner; Nonprofit & Education Advisory Practice National Co-Leader 212-885-8327
Laurie De Armond.
Laurie De Armond Assurance Office Managing Partner; Institute for Nonprofit Excellence Executive Director 703-336-1453
Marc Berger
Marc Berger National Director, Nonprofit Tax Services 703-336-1420
Lee Klumpp
Lee Klumpp National Professional Practice Partner – Nonprofit and Government Industries 703-336-1497
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