Nonprofit Audit Committee Benefits: Why your nonprofit should have one

Nonprofit Audit Committee Benefits Summary

  • Best practice to have a nonprofit audit committee to provide accountability for organization’s independent audit
    • finance committee is responsible for monitoring the organization’s financial status
    • audit committee is given authority for overseeing the organization’s external audit process.
  • To ensure that the audit process is objective, an audit committee should be an “independent” body, meaning that no one on this committee is also employed by the nonprofit
    • Directly responsible for the selection, retention and oversight of the independent auditor
    • Having an audit committee lends to the transparency of the organization to the outside world via reporting on the IRS Form 990; all 990 tax returns for charitable orgs are publicly posted online.

Want to learn more? Read our article “Why Your Nonprofit Needs an Audit Committee.”

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