• 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?

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 organizations to adopt. 

Audit Committee Candidate Decision Tree

The AICPA's Audit Committee toolkit contains teh 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.

Benchmarking Tool

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Contacts

William Eisig Atlantic Managing Partner 703-336-1401
Laurie De Armond
Laurie De Armond Managing Partner and National Co-leader 703-336-1453
Adam Cole
Adam Cole Partner and National Leader 212-885-8327
Lee Klumpp
Lee Klumpp National Assurance Partner – Nonprofit & Government 703-336-1497
Tammy Ricciardella Technical Director 703-336-1531
Marc Berger - BDO Greater Washington, D.C.
Marc Berger National Director, Nonprofit Tax Services 703-336-1420
 
Patricia Duperron National Assurance Practice Director-Governmental 616-776-3692
Andrea Wilson - BDO McLean
Andrea Wilson Partner; Nonprofit & Education Advisory Services Leader 703-752-2784
Susan Friend
Susan Friend National Assurance Director - Nonprofit & Government 954-626-2964
See all contacts

Nonprofit Standard Newsletter

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We Wrote The Book

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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.
 

Video Series: Nonprofit Voices

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Benchmarking Tool

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Events

April 25, 2019
Please join BDO USA, LLP for our next session of the 2019 BDO KNOWLEDGE Nonprofit and Education Webinar Series, "Trends and Issues in the Valuation of Gifts-In-Kind."