What is it and why the audit should have a Nonprofit

An audit is an audit by an independent person or body for audit and record keeping. Often serves as a "seal of approval" that a nonprofit is responsible for its management of its financial and other resources. An audit is usually performed by a Certified Public Accountant (CPA).

There are many good reasons to have an internal audit.

o A financial audit will ensure that documents conform to generally accepted accounting principles.
o An audit is a good design and a budgeting tool for your agency.
o An audit is a good public relations tool for what it says about your organization's financial integrity.
or granting agencies may find the information in the audited financial statements useful in evaluating an organization applying for funds.
O Lenders may require suppliers prior to approval of credit.
o Some states require nonprofit organizations to have independent control.

Organization Board of Directors is responsible for hiring the auditor and auditor's reports to the Council. Thus, the audit report is addressed to the board.

The audit report typically contains a letter (sometimes called a management letter) indicates that the opinions and recommendations of the auditors for the organization, financial statements and notes to financial statements. Typically, these financial statements show the comparative information from previous years.

One of the most important functions of the review is to uncover any irregularities or poor practices. Deficiencies in the way of managing your finances are discovered before they become a problem. An audit not only identify these weak points, but the auditor should be able to help you implement the corrective procedures, including internal controls to protect your organization. Internal controls are policies and procedures that protect the operational efficiency and ensure that funds are used appropriately. Also guard against intentional misuse of the money .......