Planning for nonprofit audits can be challenging, especially if the audit team you’re working with is inexperienced in these types of audits. Before you hire a firm for an audit engagement, consider working with non profit audit firms. These audit firms have the expertise and specialized training you need to ensure your nonprofit audit is completed accurately.
Let’s look at three major advantages you can expect when you work with expert non profit audit firms.
Three Advantages of Working With Experienced Non Profit Audit Firms
While most nonprofit organizations are not required to submit an audit to the IRS, many nonprofits do perform reviews, compilations, and nonprofit audits to meet other requirements. Whether it’s from donors, lenders, or built into standard operating procedures.
What type of rules govern nonprofit audits?
Nonprofit audits follow generally accepted auditing principles (GAAP) and have oversight from the American Institute of Certified Public Accountants (AICPA).
Here are three advantages of working with non profit audit firms to complete these engagements.
1. Expertise in Nonprofit Accounting Standards
Nonprofit organizations must submit to slightly different accounting standards and procedures than for-profit organizations. They must comply with standards set forth by the Financial Accounting Standards Board (FASB). They’re also held accountable to donors and grant funders
These standards are highly specific and specialized. When you work with nonprofit audit firms, you can rest assured that your auditor understands the nuances of nonprofit accounting and has the required competencies and licenses to back up their experience.
2. Experience with Regulatory Compliance
Rules and regulations concerning nonprofits are constantly changing. Good non profit audit firms stay on top of these evolving regulations and requirements to help your organization comply with state and federal regulations and submit the required documentation in a timely manner.
As a nonprofit organization, you’ll need to submit certain required filings for your tax-exempt status. You’ll want an experienced nonprofit audit firm that understands Form 990 to help your organization keep its tax-exempt status.
Plus, if your organization relies on public or government grants, an NFP audit firm can help ensure compliance with grant requirements and funding agreements.
3. Specialized Financial Reporting
Like for-profit organizations, nonprofit organizations need accurate financial statements, like cash flow statements, statements of activities, statements of financial position, and statements of functional expenses. Statements of functional expenses exhibit the organization’s program efficiency and fundraising impact.
Nonprofit auditors can help you create specialized financial reports. These kinds of reports can help you get a better, more precise understanding of the overall financial health of your non-profit organization.
Nonprofit Audit Experts: Assurance Dimensions
Not every nonprofit organization operates in the same way. Because of this, it’s helpful to do your research before choosing nonprofit audit firms for your organization. Be sure to check out their experience, expertise, and specializations before choosing a partnership for your nonprofit.
At Assurance Dimensions, we have over 75 years of industry experience, and our specialists stay up-to-date with the latest auditing best practices. With Assurance Dimensions, you get the “big firm” experience but with a smaller firm’s personal touch. Contact us today to learn about our non-profit auditing services.