Here's an overview of the purposes and functions of an effective audit committee within the nonprofit organization.

1. audit
committee
work within the
not-for-profit
organization

2.  Theboard
 The managementteam
 The internal auditdepartment
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An effective audit committee works with a variety
of groups within the not-for-profit organization:

3. Prospective members must
understand their role in each
relationship
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4. The audit committee and the board
The audit committee fulfills some of the board's
responsibilities for risk management and
financial oversight.
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5. The audit committee and management
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Management creates and maintains internal
controls. The audit committee must understand if
they're designed andimplemented
adequately — supported by internal and external
auditors' findings and recommendations.

6. The audit committee and internal audit
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The audit committee should work with
internal auditors in much the same way as with
external auditors.
And internal audit should be directly
accountable to the audit committee.

7. The audit committee and other groups
While working collaboratively with
management, and internal and external
auditors, the audit committee is
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independent of each of thesegroups
and must come to its own conclusions.

8. See our not-for-profit audit committee + board guidebooks for
roles, responsibilities and operating procedures.
grantthornton.com/nfpauditguide
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