An audit is more than a necessary ingredient of compliance for nonprofits. A good auditor can add value to your organization by providing helpful information that preserves wealth for your mission. The following are important considerations when selecting a firm for an audit:
- Does the firm have experience in the nonprofit sector?
- Does the firm have experience with other nonprofits with agencies similar to yours?
- Does the firm offer other services such as tax preparation and consultation?
- Is the firm willing to make presentations and recommendations at your board meetings?
- Are the firm’s partners and staff involved in the community? Do they personally volunteer?
- Does the staff stay current with new financial reporting requirements for NPO’s and talk with you about them?
- Does the staff understand the issues you’re facing regularly?
- Does the firm understand the issues your NPO faces regularly and make relevant recommendations to improve
operations and processes – or – do they just perform the audit and move on?
- Does the firm comply with applicable requirements for peer review and continuing education?
- Did the firm receive a “clean” opinion on its last AICPA peer review?
When you ask the above questions, you’ll be able to determine the accounting firm’s capabilities and ability to handle your audit with minimal interruption to staff. You should also be able to get a sense of the type of priority that the firm will place on having your business.