Chapter 14
Preparing for an Audit
IN THIS CHAPTER
Understanding why audits are important
Discussing the reasons for getting an audit
Grasping the annual audit process
Knowing the types of grant audits
Finding out about IRS examinations
As the executive director or manager of a nonprofit, you probably already know that audits are a part of business. An audit doesn’t mean that you’re doing anything wrong. It’s simply an evaluation of what’s taken place. An auditor looks at events to determine the degree to which the information presented corresponds with established guidelines. After completing the audit, the auditor prepares a report with the details of his findings. Audits are done to verify whether you’re doing what you’re supposed to do.
Audits come in many forms. This chapter discusses two types of audits: grant audits and financial statement audits. A grant audit takes a look at your grant documents and budgets to verify that your nonprofit is properly using grant money. A financial ...
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