Your audit committee could possibly be involved in hiring greater than just the auditors. Underneath SOX, the committee ought to also have authority to engage independent counsel and also other advisors because it deems important to carry out its duties. Underneath SOX, if a provider does not possess a separately designated audit committee, it ought to state that the complete board of directors is acting because the audit committee.
This can be a common to which the public will probably hold bigger nonprofit organizations, in spite of the lack of any formal legal needs that apply especially to nonprofits.
At a minimal, your nonprofit will need to program on disclosing the following within your annual reports:
- No matter if you could have an audit committee
- No matter if the members of your committee, should you have one particular, are independent underneath the guidelines of your public stock exchanges
