Audit Committees help the organization to be fiscally responsible and align the mission of the organization to be executed with strong controls in establishing good governance processes. From hiring and meeting with the auditors regularly and understanding risks and processes you can help and attain and be part of a thoughtful audit process and working with the auditors to deliver the audited financial statements on time, on budget with value added accomplishments. Using analytical ratios and analysis and your organizations key metrics to compare to the budget and prior year results and compare to other organizations you can help your organization to use the financial statements to tell a significant success story about the achievements and help with fundraising. Typically 3 meetings with the auditors during the annual fiscal audit cycle ensures you are looking back and looking ahead at new standards that are coming and also dealing with any issues that arises during the audit, between the auditors and management of the organization. Having a professional relationship with the auditors you can learn how AI are impacting audits and the use of AI during the audit process. AI can be used to look at the whole population of revenues for the year and then focus on identifying the contracts or amounts for detailed testing that met certain criteria or risk factors. Journal entries can be tested in total and items for follow up be identified, using the firms own AI tools. The required audit committee communications can be very beneficial to understand how the organization can grow responsible. Instead of focusing on the process and be afraid of the communication, the organization can lean in and learn and ask questions from the auditors.

Other areas include risk assessments working with the CEO and CFO and identifying 5 risk areas to be monitored regularly with the finance committee. This will ensure revenues and issues with revenues are monitored properly and regularly by the appropriate teams in the organization. Cash flow projections are prepared for a 3 month cycle and monitored. Key customers are reviewed. Key vendors are reviewed. Key banking relations are reviewed. Key employee related contracts with HR and payroll providers are reviewed including pension. A typical 10 point agenda is prepared by the Audit Committee Chair for each of the regular meetings and working closely with the CFO to obtain all the necessary reports and results to be reviewed by the complete committee.

As a former audit partner knowing what is involved and now as audit committee chair you can help the organization manage risks and add value. You have an opportunity to train and teach other committee members and the board. Strong financials and strong governance will help the organization be successful. Attending trainings in compliance and corporate governance will ensure the committee is up to date on the latest issues and risks facing the audit committee and the organization. It is ongoing learning and communication with all the key stakeholders that will ensure getting clean audit reports and no management letter comments and timely service.