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:
- 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.
- 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.
- Reconcile all bank account
Review all bank account statements to identify any inconsistencies and fix them.
- 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.
