When you serve on a nonprofit’s board of directors and meet the needs, you incredibly probably might be asked to serve on an audit committee. Undertaking so requires greater than basically rubber-stamping the company’s financials. For starters, you will be asked to play a relatively active function in recruiting and deciding just how much to spend the company’s auditors. You will also be a go-to individual inside the organization when economic matters arise.
Monitoring occasions and policing policies
The audit committee not simply should be a nonprofit’s internal moral compass, nevertheless it also ought to monitor external publicity and occasions which can influence the audit course of action. It is accountable for ensuring that the nonprofit responds
appropriately. Examples of what the audit committee is accountable for reviewing and monitoring include things like
- The annual audited economic statements and quarterly reports filed by the nonprofit
- Press releases and economic facts offered for the public
- Policies for threat management inside the nonprofit
- Complications that take place through an audit at the same time as management’s response to such complications
- The function and efficiency on the nonprofit’s internal auditors
- Alterations within your nonprofit’s accounting policies
- Matters with regards to internal controls and audit adjustments
- The policies and procedures on the audit committee itself
