Charities Consider Role for Audit Committee
Although Sarbanes-Oxley rules apply only to publicly traded businesses, nonprofits are beginning to look to its standards for "best practice" guidelines.
Although the Sarbanes-Oxley statute passed last summer to improve financial statement reporting in response to the for-profit debacles applies only to publicly traded for-profit companies, it is beginning to set standards for "best practices" for larger charities.
Drexel University in Philadelphia claims to be the first large charity to amend its bylaws to require that its Audit Committee be composed entirely of "independent" directors.
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