B Resources - Audit Committee
B Resource Guide:Creating and Improving Your Audit CommitteeB Resource Guide:Creating and Improving Your Audit Committee What’s in this Guide: I.Definition:WhatisanAuditCommittee? II.DutiesandBestP r actices III.T oolkitsandT emplates IV.SampleAuditCommitteeCharters1I. Definition: What is an Audit Committee? Inapublicly-heldcompany,anaudit committeeisanoper atingcommittee.Committeemembersar enormallydr awnfrommembersoftheCompany’sboar dofdir ectors.Anauditcommitteeofapubliclytr adedcompanyintheUnitedStatesiscomposedofindependentandoutsidedir ectorsr eferr edtoasnon-executivedir ectors.Inanycompanyornonprofitorganization,theAuditCommitteeprovidesacruciallinkbetweentheboar dandtheindependentauditorandservesak eyroleinhelpingtheboar dtofulfillitsfiduciarydutytooverseetheorganization ’sfinances.Responsibilitiesoftheauditcommitteetypicallyinclude:•Overseeingthefinancialr eportingprocess.•Monitoringchoiceofaccountingpoliciesandprinciples.•Establishingpoliciesandpr acticestopr eventfinancialfr aud.•Monitoringinternalcontrolprocess.•Overseeinghiringandperformanceoftheexternalauditors•Arr angingforastandar d‘whistle-blowing’procedur e.TheU.S ...