The audit committee’s greatest value is not simply reviewing what has already happened. It is helping the organization identify risks early enough to prevent tomorrow’s problems.

Over the years, I’ve participated in countless audit committee meetings from both sides of the table. I've presented financial statements, discussed audit results and walked committees through internal control matters. While these discussions are important, the audit committee meetings that created the greatest value were rarely centered on accounting standards or audit adjustments.

I remember the questions. The most effective audit committee members understood that stewardship extends beyond reviewing historical financial results. Their greatest value came from helping management identify emerging risks, address vulnerabilities and strengthen organizational resilience before issues appear in financial statements, audit results or regulatory findings.

Here are five questions I wish more nonprofit audit committees asked their CFOs.

1. What concerns you that isn’t showing up in the financial statements yet?

Financial statements tell us what happened. They rarely tell us what may be coming next.

As CFOs, we spend considerable time evaluating emerging risks, whether related to technology, staffing, donor behavior, regulatory changes or operational capacity. Many of these risks are not reflected in the financial statements until they have already begun affecting the organization.

When audit committees ask this question, they create space for forward-looking conversations rather than limiting discussions to historical results.

Good stewardship requires more than understanding the past. It requires helping leadership anticipate challenges before they begin affecting the mission.

2. Where are we relying too heavily on people rather than processes?

Every nonprofit has dedicated employees who consistently go above and beyond.

However, organizations become vulnerable when critical functions depend too heavily on institutional knowledge, individual relationships or extraordinary personal effort.

A mission should not depend on one employee’s memory, one person’s willingness to work late or one individual’s unique expertise.

When audit committees ask this question, they encourage conversations about documentation, succession planning, cross-training and operational resilience.

Good stewardship means ensuring the mission can continue regardless of personnel changes or unforeseen disruptions.

3. What problem are we tolerating because it hasn’t hurt us yet?

This is often the most uncomfortable question, but also one of the most valuable.

Every organization has recurring frustrations: a manual process, an outdated system, a control that works inconsistently or a report that takes longer than it should to prepare.

Because these issues rarely create immediate crises, they often remain unresolved.

Over time, however, small inefficiencies can consume resources, create unnecessary risk and distract staff from mission-focused work.

Audit committees provide tremendous value when they encourage management to address issues before they become larger problems.

4. If we doubled in size, what would break first?

Growth is often viewed as success in the nonprofit sector. More donors. More programs. More beneficiaries. More impact. But growth places pressure on systems, processes, technology, controls and staff. One of the audit committee’s most important responsibilities is ensuring that growth remains sustainable. An organization that grows faster than its infrastructure can support may ultimately place its mission at risk.

By asking this question, audit committees help management evaluate organizational readiness rather than focusing solely on organizational ambition. Stewardship means ensuring that growth strengthens the mission rather than strains it.

5. If you were sitting in our seats, what question would you ask?

This remains my favorite audit committee question. Not because it produces a perfect answer, but because it demonstrates curiosity and partnership.

CFOs work across departments and often see connections between finance, operations, technology, people and strategy. They may recognize emerging trends or risks that are not readily apparent in a committee packet. When committee members ask this question, they invite a broader discussion about the organization's future.

Strong governance is not built solely on oversight. It is built on thoughtful dialogue. And thoughtful dialogue often begins with a simple question.

Beyond the Audit

A clean audit is important. Strong internal controls matter. Financial accountability is essential. But those are not the ultimate goals. The ultimate goal is ensuring that the organization remains capable of advancing its mission for years to come. Too often, audit committees are measured by whether problems occurred. The more valuable question is whether the committee helped identify risks early enough to prevent those problems from occurring in the first place.

The questions we ask determine where our attention goes. The right questions help audit committees look beyond financial statements and consider the long-term health, sustainability, and resilience of the organization.

In the nonprofit sector, that may be the most important form of stewardship there is.