A successful financial statement audit is vital for not-for-profit organizations to continue receiving donations. Proper preparation will guarantee a seamless process for the independent auditor and staff involved.
How to prepare for not-for-profit Audits
Preparing for an audit will save you the cost of extending the audit past the agreed duration. Prepare for your next audit in 4 simple steps:
1. Assemble and update financial documents
Financial documents for the fiscal year, such as ledgers, invoices and paid bills, and tax returns, should be reviewed and updated in preparation for the audit.
2. Organize all documents in a central location according to priority
The financial audit process is complex. You must organize all documents in order of importance to avoid wasting time and money.
3. Reconcile all bank account
Review all bank account statements to identify any inconsistencies and fix them.
4. Prepare supporting documents
A document like trial balance, depreciation schedules, investment activities, and others should contain correct information.
Check the Not-for-profit audit checklist here.
Need help?
Contact MetwallyCPA to help you conduct an independent audit that conforms to best practices.
Mohamed founded Metwally CPA PLLC in 2020 in the Dallas-Fort Worth metropolitan area. He holds active CPA license in the state of Texas and California. Mohamed is the firm’s Executive Director. Mohamed has a Master of Science (M.S.) degree in Accounting from University of Dallas. He has extensive assurance experience in a wide variety of industries, and he also devotes considerable time consulting and working with organizations and CPA firms on internal controls, audit quality, automation, and accounting best practices. He has over 15 years of audit experience.
Prior to founding the firm, Mohamed worked for big 4 and national firms for over than 10 years in the assurance practice. Mohamed worked on private clients as well as public clients and specialized in financial services sector.
He is a member of the Texas CPA Practice Issues, Diversity and Inclusion, and Governmental Accounting and Single Audits Conference Committees of Texas Society of CPAs.
Mohamed is a member of the American Institute of Certified Public Accountants, member of the AICPA small business group, member of the American institute of Certified Management Accountants, and Texas Society of Certified Public Accountants.
