• Effective Audit Committee Guide

Introduction

Before we get into the “WHOs” of the Audit Committee in particular, it is important to ensure that your organization recognizes the key participants within the marketplace, as they all bring unique experiences and perspectives to the governance of financial reporting.

Who Make the Best Audit Committee Members?

The best audit committees are those that set the appropriate tone at the top where the focus is on ensuring the organization acts in accordance with the best interests of its stakeholders. 

Who Can Serve as a Financial Expert on the Audit Committee?

span style "font-family: proxima-nova; font-size: 14px;" The inclusion of at least one audit committee member with financial expertise is a highly recommended best practice. This guidance was mandated for public companies by the Sarbanes-Oxley Act and should be a consideration for all organizati...

Audit Committee Candidate Decision Tree

The AICPA's Audit Committee toolkit contains the following decision tree that may assist Audit Committees in evaluating a candidate for consideration as their financial expert.

Why Do Audit Committees Need to Include a Financial Expert?

The audit committee should be responsible for making a formal recommendation to the board that the audited financial statements be approved. 

Who Should Fill the Role of the Audit Committee Chair?

This role requires a strong, independent and competent communicator who is willing to ask tough questions of management and others in order to truly understand and ensure that the audit committee is focused on risk management and financial oversight of the organization and tha...

Who Else is Needed to Serve on the Audit Committee?

To obtain a balanced perspective, in addition to the financial expert, we recommend two to five additional members with diverse backgrounds and experience.

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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
See all contacts

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How to Read Nonprofit Financial Statements: A Practical Guide is a key resource that will help you read, interpret, and use nonprofit financial statements.
 

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