Patricia Farrell of Meyer Unkovic & ScottForming audit committees is becoming a more common practice in the nonprofit sector, offering an unbiased outlet to monitor the financial health of an organization. Appointed by the board of directors as part of its fiduciary duty to the nonprofit, audit committees ensure that the leadership team is effectively following internal and external auditing protocols, and that the organization’s financial reporting practices are objectively reviewed on a regular basis.
Recently, increased pressures from regulatory bodies and increased public scrutiny have created an even greater need for such oversight, safeguarding the nonprofit from fraudulent or reputation-damaging activity. With so much at…
