Audits are expensive in terms of money, staff time, and board attention. CPA Dennis Walsh tells us how to wring the most value from them:
An IRS tax audit has been described as an autopsy without the benefit of death. The financial statement audit -- done by an independent CPA, not the IRS -- can be seen by nonprofits as only slightly more appealing.
Many nonprofits have annual CPA audits, but the executive director and/or the board's finance or audit committee may be unsure whether they are getting the most out of the audit. A worthwhile question for the board to ask might be: "Are we getting the most out of this significant investment of money and time?"
We have developed two questionnaires to help you answer this question. The first looks at whether your auditor is doing a good job for you. The second questionnaire looks at whether your nonprofit is doing its part in utilizing the audit. (The questionnaires can also be downloaded as a Word document; see link at end of article.)
But first, . . .