Not-for-Profit Audit Committee Best Practices
The recent flagrant accounting and reporting abuses by several large public companies cast a shadow of suspicion on all organizations, including not-for-profit entities. The resulting regulations and legislation, including the Sarbanes-Oxley Act, established stringent standards for the audit committees of public companies. While the letter of the law doesn't apply to not-for-profit entities, increasingly they are finding that they must adopt strict standards in order to satisfy donors, potential donors, supporters, and other stakeholders. However, there is no set of rules for audit committees of not-for-profit organizations.This book helps not-for-profit organizations cut through the chaos and confusion, analyze various proven financial and reporting methodologies, and implement the best practices and safeguards that best fit their organizations. Written in plain language, it is a straightforward, authoritative reference for those serving not-for-profit organizations, including audit committee members, individuals serving on boards of directors, managers, independent auditors, and legal advisors. It covers:An overview of the operating environment and financial reporting functionGuidelines for establishing an audit committeeThe best uses of an internal audit functionHow to implement an effective whistleblower programThe audit committee's relationship with the independent auditorCreating an effective audit committee action planComplete with checklists for various activities of auditing committees and sample questions for committee members to ask, this book provides guidance on financial governance and reporting and helps not-for-profit auditing committees adopt and implement the best practices tailored for their organizations.