The Value of Municipal Audit Committees

This article, which appeared in the GAO Journal, No. 3, Fall 1988, discusses the value of municipal audit committees by focusing on the procedures and functions of New York City's (NYC) Audit Committee. NYC found its Audit Committee to be a very helpful vehicle for maintaining and enhancing the independent audit process. The NYC Audit Committee: (1) is independent from city management; (2) reviews the selection of the independent audit firm which reviews the city's financial statements; (3) oversees the audit engagement; (4) reviews audit findings; (5) monitors the work of the internal staff; (6) arbitrates differences between the audit firm and city management; (7) ensures that the audit firm is independent of management; and (8) ensures that city management heeds the findings of the audit firm.