The Advisory Board's primary responsibility to is to screen and recommend candidates for the IBO director, who is selected for a four–year term by a special committee composed of the Comptroller, the Public Advocate, a Borough President chosen by the Borough Presidents, and a Council Member chosen by the Council. The Advisory Board also recommends candidates to fill Advisory Board vacancies, and members serve as informal advisors to the IBO. The Advisory Board currently meets about three times a year; the meetings typically include discussions of city fiscal conditions and briefings by IBO staff.

Advisory Board members are appointed for five-year terms by the Public Advocate and the City Comptroller. The City Charter spells out in detail the qualifications for Advisory Board members; abbreviated descriptions of the qualifications are shown below (affiliations are indicated for identification purposes only).