What it is
The audit committee is where the board oversees financial reporting and the independent audit. A charter fixes its membership, responsibilities, meeting rhythm and authority, and gives the auditor a clear counterpart for required communications.
The template covers purpose, membership and financial literacy, a responsibilities table across the auditor, financial reporting, audit results, internal control, internal audit, fraud and whistleblowing, compliance and the finance function, meetings and executive sessions, authority and resources, and annual evaluation.
When to use it
- Forming an audit committee.
- Preparing a private company or nonprofit for its first audit.
- Annual charter review.
What’s inside
- Purpose and membership
- Responsibilities table
- Meetings, executive sessions and reporting
- Authority, evaluation and adoption block
Standard cited
This template follows AU-C 260 / Governance. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use. See AU-C 260 explained.
Questions
What does the auditor tell the committee?
AU-C 260 lists matters the auditor communicates to those charged with governance, including the planned scope and timing, significant findings, difficulties encountered, uncorrected misstatements and control deficiencies. The charter ties these to committee agenda items.
Do public company rules apply?
Public company committees have additional legal and listing requirements. The template is generic, so adapt it and have counsel review.
Should the committee meet without management?
Yes. The charter provides for separate sessions with the auditor and with internal audit at least yearly.
Related templates
- Board of Directors Charter
- Audit Committee Annual Calendar and Agenda Planner (Excel)
- Communication With Those Charged With Governance (AU-C 260)
- Required Communications with Those Charged with Governance (AU-C 260)
Last updated 11/05/2026. All free templates.