So you are now a member of the audit committee for an exempt organization, what do you do now? An audit committee has numerous responsibilities, including the oversight of the following areas: financial reporting, internal controls, risk management, ethics and compliance programs, and both independent auditors and internal auditors. Ultimately, the responsibilities of the audit committee are dependent on the board of directors and the management structure of the entity.
The third edition of the Audit Committee Toolkit: Not-for-Profit Entities breaks down what not-for-profit audit committees are responsible for and how they should perform their tasks. The toolkit is comprised of several subgroups, including Audit Committee Administration, Audit Committee Key Responsibilities, Audit Committee Performance Evaluations, and Audit Committee Other Tools (including risk management and resources). The toolkit also includes a download of Microsoft Word files of all the tools so that your entity can customize them to fit your committee’s needs.
Audit Committee Administration
This section outlines the roles and responsibilities of the audit committee and summarizes other tools such as the charter matrix, the financial expert decision tree and AICPA peer reviews.
This section goes into further detail regarding internal control, fraud, whistleblower policies, and independent auditor communications.
This section provides guidance on evaluating internal audit, independent auditors, and a self-evaluation of the audit committee.
Enterprise risk management and analytical procedures are detailed in this subgroup. Let us know if your organization would like to access these resources or to discuss your organization’s board responsibilities in general.