Audit Committee Roles and Responsibilities

In June 2005, the Board of Trustees amended Policy 1A.2, Part 5, Subpart E to require 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 restrains external auditors who are under contract for audit services from performing consulting services unless the audit committee grants its advance approval. Also, it stipulates that the committee review audited financial statements prior to release (click here for more information about the audit committee's responsibilities for reviewing audited financial statements prior to release).
• Policy 1A.4, Part 5 establishes that the audit committee is responsible for selecting and evaluating the Executive Director of Internal Auditing. The direct reporting relationship of the Executive Director 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 reports on its activities for the committee.

The committee has also monitored other important issues on behalf of the board. For example, it has overseen the design and development of the system-level accountability framework.