Non-Profit Reviews and Audits
Building Trust Within and Outside Your Organization
It is especially important that non-profit organizations maintain the public trust. Such confidence allows them to garner support and pursue their mission. Often a question is posed about whether to conduct an audit or review. Be aware that states differ on their financial requirements for audits or reviews of nonprofits. Check with us to determine what your state requires.
A financial review requires the accountant to gather a series of financial documents to be reviewed. Inquiries and analysis provide assurance that the financial statements conform to generally accepted accounting principles. A review can be used when an organization needs some assurance about their financial statements.
An audit begins with the same steps as a review but following the review the accountant goes to the nonprofit location to verify the accuracy of the documents.
– The accountant confirms the data with outside parties
– Transactions are selected and tested by examining support documents
– Physical inspections are made
– Internal systems are evaluated
The accountant then takes those findings and presents them to the organization. An audit provides the highest level of assurance expressed in the accountant’s report.
Start a conversation.
Find out if an audit or review makes sense for your nonprofit.