What is the role of a school district's audit committee or board-appointed financial auditor?

• A. They monitor the financial reporting process, internal controls, and audit results.
• B. They manage day-to-day accounting.
• C. They set district-wide financial policies.
• D. They prepare the annual budget.

Answer: (C)

The main idea is oversight of financial reporting and audits. The audit committee or board-appointed financial auditor serves as a governance link that ensures the district’s financial statements are reliable, internal controls are effective, and audit results are properly reviewed and acted upon. They oversee the independence and work of external auditors, monitor the district’s risk management and compliance with laws, and follow up on audit findings and management responses. This role is about safeguarding accuracy and accountability, not handling daily accounting tasks, setting district-wide policies, or preparing the annual budget. Those operational and policy/planning duties belong to district management and the board's policy and budgeting processes.