Is your Not-for-profit preparing for a financial audit? Here’s a list of frequently asked questions.
What is an independent audit of a not-for-profit?
An independent audit for a Not-for-profit occurs when an external auditor – mostly a CPA firm – conducts a financial audit of your accounting practices and records.
What are the four financial statements required for all Not-for-profit entities?
- Balance sheet
- Income statement
- Statement of cash flows
- Statement of functional expenses
Which Type of Audit is conducted by a Not-for-profit Organization?
Generally, there are two types of not-for-profit audits, they are;
- External audit
- Internal audit
What is the Importance of Audits for Not-for-profit organizations?
Audits help to check the financial health of the organization. It also serves as proof of transparency to the grantors and other stakeholders.
Are there any Alternatives to Having an Independent Audit?
A not-for-profit that generates above $500,000 (depending on state and laws) must file an independent audit. However, you can conduct a financial statement review or compilation if the law allows it.
Need help?
Contact MetwallyCPA for a professional financial statement audit for a Not-for-profit
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.
