Audit Committee Formation in the Aftermath of 2007-2009 Global Financial Crisis, Volume III

CHAPTER 3

Audit Committees of Private Companies, Not-For-Profit Organizations, and Governmental Entities

Executive Summary

In the context of corporate governance and accountability, not-for-profit (NFP) entities have the same stewardship responsibilities as that of business corporations. NFP entities, however, fundamentally differ from business corporations concerning their relationship with stakeholders. NFP entities receive grants, which are funds from their constituencies, to provide services to the community. This chapter discusses the roles and responsibilities of the audit committee or its equivalent in federal state and local governmental entities, health care, colleges and universities, and in other not-for-profit entities.

 

Introduction ...