Direction for audit committee members of not-for-profit boards

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Direction for audit committee members of not-for-profit boards

© 2016 Grant Thornton LLP. All rights reserved. 2

An audit committee exists

to help the board of directors

maintain the organization’s integrity, financial credibility + viability.

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The audit committee instills stakeholder confidence in the organization’s financial and tax status, internal controls, risk management and compliance procedures.

Members work with various groups and must understand all relationships

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Working with the boardThe audit committee fulfills some board responsibilities for risk management and financial oversight.

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Working with managementThe audit committee must understand if management’s internal controls are adequately designed and implemented (supported by findings + recommendations from internal + external auditors). >> Download the guide

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Working with internal auditThe audit committee must have much the same relationship with internal audit as it has with external audit.The audit committee must have direct accountability from internal audit.

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Working with management + internal auditThe audit committee must be both collaborative with and independent of management + internal audit (+ external audit).

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See our audit committee + board guidebooks for roles, responsibilities and operating procedures. Download the guide.

grantthornton.com/nfpauditguide

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