Audit Committee Roles and Responsibilities

Board Policy requires annual training for audit committee members. The audit committee is responsible for overseeing the complex, technical work of external and internal auditing. The annual training is intended to prepare audit committee members for carrying out their oversight responsibilities.

Several board policies cite important roles and responsibilities for the audit committee, including:

• Policy 1A.2, Part 5, Subpart E establishes audit committee responsibilities for selecting external auditors and overseeing their work. It requires the committee to review audited financial statements prior to release (more information about the audit committee's responsibilities for reviewing audited financial statements prior to release).
• Audit Committee Charter was approved by the Board of Trustees. 
• Policy 1A.4, Part 5 establishes that the audit committee is responsible for selecting and evaluating the chief audit officer. The direct reporting relationship of the chief audit officer to the Board of Trustees is an essential element of ensuring that the internal audit function is independent from management and able to carry out its monitoring function objectively.
• Policy 1D.1 is the charter for the Office of Internal Auditing. The charter provides several important duties to the audit committee in overseeing the office. It must approve the annual internal auditing plan, including major system-wide projects undertaken by the office. Also, the office must report significant instances of noncompliance and unresolved audit findings to the committee. Finally, the office must prepare an annual report on its activities for the committee.