It is the recommendation of CPA’s auditors (KPMG) that CPA appoint an Audit Committee among its Standing Committees.  There are several reasons for encouraging/requiring organizations to have an audit committee. These include ensuring that an impartial external review of the organization finances is designed, conducted and reported to a Board designated group that will look at it closely on behalf of the Board; that a CEO, President or Chair cannot subvert the audit process and subsequently the organization’s finances; that there is a clearer accountability trail for members/shareholders and the trail has both checks and balances that support accountability and are transparent.  In consultation with KMPG, it is recommended that the Audit Committee be composed of Board members, other than the Presidential Officers and Chief Executive Officer, whose function is to oversee the audit process and liaise between the auditor and the association’s chief financial officer.  As set out in Industry Canada’s Primer for Directors of Not-for-Profit Corporations (2002), the functions of the audit committee are distinguished from those of the finance committee.  The Finance Committee concerns itself with the budget, regular financial reporting to the Board of Directors and legal compliance.  The Audit Committee has an accounting function and is concerned with the integrity of the association’s finances. 

 

The creation of the CPA Audit Committee was approved at the June 2009 Annual General Meeting.