Certified Government Financial Manager (CGFM) Practice Exam

The purpose of audit committees maintaining a communication link is primarily to facilitate communication between auditors and the governing board. This communication is essential for ensuring transparency and accountability in the financial reporting process. The audit committee acts as an intermediary, allowing auditors to effectively share their findings and concerns with the governing board, which is responsible for overseeing the organization’s financial practices.

By maintaining an open line of communication, audit committees help ensure that any potential issues identified during audits are addressed promptly. This relationship enhances the effectiveness of governance by enabling the governing board to make informed decisions based on the auditors' insights, which ultimately strengthens the organization's financial integrity and risk management processes. Such communication also fosters trust among stakeholders, as it allows for a thorough review of financial activities and adherence to compliance standards.