“Start by doing what’s necessary; then do what’s possible; and suddenly you are doing the impossible.” -Francis of Assisi
As preparation for the audit continues, it is essential to keep a checklist. A comprehensive checklist that will keep your organization on track is available at the National Council of Nonprofits website.
An audit centers on the documentation of your organization’s accounting methods and practices. You will want to have all the required financial documentation from the fiscal year organized and ready for the review of the auditors. This will save time for the auditors and stress for your organization.
Tip #1
Place all your documentation in a single folder to allow easy access to the auditors. Think ahead of what documentation they will want to review and have it ready. Not only will this make the auditor’s job easier, it will also allow you to keep track of what the auditors are reviewing.
Tip #2
Ask the auditors what format would make the documentation most easily accessible for them.
Tip #3
Have a pre-audit meeting with the auditors and all the nonprofit staff relevant to the audit. Set a timeline for the audit with the auditors and staff. Ask the auditors at this meeting for their document expectations, so you will know what information to have ready for them.
Tip #4
Don’t schedule any other staff events during audit time. If possible, assign specific people to oversee the information for the audit, as well as staff to be “on call” for the auditors, in case of questions. The organization needs to realize the audit process is a priority. It’s not good time for personal leaves or vacations.
Tip #5
Have a place set up for the auditors to work comfortably. If an auditor is extremely familiar with an organization, the audit might be able to be conducted via the Internet. However, the auditor is most likely going to want to do the work onsite. Sometimes more than one auditor will work on the audit. It is important to create a private, comfortable area to work through the documentation.
Tip #6
The auditors will probably have questions for the staff to familiarize themselves with your organization and its activities. All staff should be instructed to cooperate and answer the questions as honestly as possible. (These tips and more found at the National Council of Nonprofits website).
For solid expertise from a company with over 25 years of nonprofit accounting and audit experience, call Beck & Company at 703-834-0776. Our commitment to excellence is demonstrated in our team’s understanding of your business and personal financial objectives and then delivering innovative solutions to achieve them. Let us help make your audit process go smoothly.