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.”