Behavioral Red Flags for Internal Fraud
Fraud can be uncovered in many different ways: a tip, management review, internal or external audit, document examination, account reconciliation or even by accident. In 65% of cases, however, someone at the company has noticed something amiss and alerted the company. That means there were clues along the way. It’s easy to miss these clues […]
Know the Benefits of a Nonprofit Audit
The regulations on nonprofit auditing vary from state to state. There are federal laws that mandate audits for certain nonprofits too. First and foremost, you should educate yourself on the laws in your state and investigate whether you are legally required to undergo an audit. For example, the federal government requires that any nonprofit receiving […]
Does Your Nonprofit Need an Independent Audit?
The Internal Revenue Service (IRS) doesn’t require nonprofits to have independent audits, but that doesn’t mean your nonprofit never needs an audit. Some federal, state and local government agencies require audits, as do some banks and foundations. Generally, the requirements relate to the nonprofit’s size or spending. When an Audit Is Required An independent audit […]
Guide to Preparing for an Audit of Your Nonprofit
Having an independent audit is a significant endeavor. Not only is it an expense, but it also requires a lot of preparation. The auditors will need access to all of the information they need to help them carry out their mandate — that is, examining your organization’s financial records, accounts, business transactions, accounting practices and […]
Audits, Reviews and Compilations: A Summary
You will want to prepare your financial statements in accordance with an accounting framework that’s appropriate for your business. Most of the time, you’ll opt for a CPA to produce your financial statements. Getting an accountant’s blessing is especially useful when you are applying for more credit from a bank. Financial statements are intended to […]
SELECTING AN AUDIT FIRM FOR YOUR NONPROFIT ORGANIZATION
The requirement for a nonprofit organization to have an annual audit of their financial statements varies from state to state. The State of Michigan requires any charitable organization that solicits or receives, or intends to solicit or receive, contributions to register with the attorney general. The State requires the organization to have an audit of […]
