4. What are the benefits to a state or local government of establishing an audit committee? An audit committee, when properly organized and utilized, can provide substantial benefit to all concerned parties. It can strengthen the stewardship reporting function of the governing board; it can improve communication between the independent auditor and management, thereby enhancing the auditors independence by serving as an objective buffer between the auditor and management. For taxpayers and creditors, an audit committee can help ensure maximum value and benefits from the audit itself.