The National Council of Nonprofits has created this Nonprofit Audit Guide to provide charitable nonprofits with the tools they need to make informed decisions about independent audits. Because state laws vary in the scope of their regulation of charitable nonprofits, this Guide includes a 50-state chart that shows whether there is an audit requirement in each state, and if so, under what conditions. The Guide will help you understand what independent audits are, and help you prepare your nonprofit for an audit. The Guide will also tell you about the role of the board in the audit process, and shares tips and tools to help your charitable organization manage the audit process -- from hiring an auditor and preparing for the audit, to evaluating the audit firm's work. Additionally, the Guide includes information about special audit requirements that apply to nonprofits that receive funding from the federal government.
Acknowledgement: This Guide was made possible by the First Nonprofit Foundation, whose mission is to further effective risk management practices and the overall development and advancement of nonprofits through unique, creative initiatives, such as this Nonprofit Audit Guide.
Disclaimer: The resources in this Guide are offered for informational purposes only. The National Council of Nonprofits recommends consulting a lawyer or accountant who has expertise in accounting rules for charitable nonprofits so that you can be confident that your charitable nonprofit is in compliance with all legal requirements. And, when your organization is looking for trusted information about financial management practices, good governance, and accountability, don’t overlook the resources that membership in your state association of nonprofits can provide.
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