Nonprofit Annual Audit Preparation and Readiness Checklist
Proper audit preparation reduces audit costs, prevents delays, and demonstrates financial controls. This pre-audit checklist ensures all documentation is organized, reconciliations are complete, and prior year findings are resolved before auditors arrive.
- Industry: Nonprofit
- Frequency: Annually (6-8 weeks before audit fieldwork)
- Estimated Time: 8-12 hours over preparation period
- Role: CFO / Controller
- Total Items: 28
Reconciliations and Closing Entries
Complete all year-end reconciliations.
- All bank accounts reconciled through fiscal year end?
- Investment accounts reconciled to year-end statements?
- Accounts receivable and pledges receivable reconciled and aged?
- Accounts payable and accrued liabilities reconciled?
- Payroll liability accounts (withholding, benefits) reconciled to W-3?
Restricted Fund and Grant Reconciliation
Reconcile restricted funds and grants.
- Schedule of restricted fund balances prepared and reconciled to general ledger?
- Grant activity schedule showing revenue, expenses, and balance by grant prepared?
- Deferred revenue schedule for grants received but not yet earned prepared?
- Pledge receivable schedule with discount to present value if multi-year prepared?
- Endowment activity schedule prepared if applicable?
Supporting Documentation Organization
Organize supporting documentation.
- Prior year auditor request list (PBC list) items prepared in advance?
- Board and committee meeting minutes for full year organized and available?
- Significant contracts and grant agreements organized and accessible?
- Fixed asset schedule updated with additions, disposals, and depreciation?
- Debt and loan documentation with terms and year-end balances compiled?
Prior Year Findings Resolution
Resolve prior year audit findings.
- Prior year management letter findings reviewed?
- Corrective actions for prior findings implemented?
- Status of each prior finding documented for auditor discussion?
- Prior single audit findings corrective action plans implemented?
Single Audit Preparation (if applicable)
Prepare for single audit.
- Schedule of Expenditures of Federal Awards (SEFA) prepared?
- Major programs identified in advance of audit for program testing?
- Documentation supporting compliance with federal program requirements organized?
- Subrecipient monitoring documentation organized for review?
Audit Process Coordination
Prepare for audit process.
- Audit engagement letter signed by management and audit committee?
- Fieldwork dates scheduled and staff availability confirmed?
- Audit workspace and system access arranged for auditors?
- Management representation letter topics reviewed in advance?
- Audit committee briefed on expected audit timeline and any known issues?
Related Nonprofit Checklists
- Nonprofit Grant Tracking and Fund Accounting Ledger Review
- Nonprofit Donor Receipt and Acknowledgment Compliance Audit
- Nonprofit Annual Audit Readiness Review
- Nonprofit Annual Budget Development and Board Oversight
- India Temple & Religious Place Safety Checklist
- Church Facility Safety Inspection Checklist
- Nonprofit Program Compliance Checklist
- Nonprofit Board Meeting Preparation Checklist
Related Financial Management Checklists
- Nonprofit Grant Tracking and Fund Accounting Ledger Review - FREE Download
- Nonprofit Donor Receipt and Acknowledgment Compliance Audit - FREE Download
- Nonprofit Annual Audit Readiness Review - FREE Download
- Nonprofit Annual Budget Development and Board Oversight - FREE Download
- Nonprofit Financial Internal Controls Annual Review - FREE Download
- Nonprofit Gift Acceptance Policy Compliance Review - FREE Download
- Nonprofit Monthly Financial Reporting Package - FREE Download
- Nonprofit Financial Policy Annual Review and Update - FREE Download
- Nonprofit Investment and Endowment Management Review - FREE Download
- Nonprofit Accounts Payable and Disbursement Controls - FREE Download
Why Use This Nonprofit Annual Audit Preparation and Readiness Checklist?
This nonprofit annual audit preparation and readiness checklist helps nonprofit teams maintain compliance and operational excellence. Designed for cfo / controller professionals, this checklist covers 28 critical inspection points across 6 sections. Recommended frequency: annually (6-8 weeks before audit fieldwork).
Frequently Asked Questions
What does the Nonprofit Annual Audit Preparation and Readiness Checklist cover?
This checklist covers 28 inspection items across 6 sections: Reconciliations and Closing Entries, Restricted Fund and Grant Reconciliation, Supporting Documentation Organization, Prior Year Findings Resolution, Single Audit Preparation (if applicable), Audit Process Coordination. It is designed for nonprofit operations and compliance.
How often should this checklist be completed?
This checklist should be completed annually (6-8 weeks before audit fieldwork). Each completion takes approximately 8-12 hours over preparation period.
Who should use this Nonprofit Annual Audit Preparation and Readiness Checklist?
This checklist is designed for CFO / Controller professionals in the nonprofit industry. It can be used for self-assessments, team audits, and regulatory compliance documentation.
Can I download this checklist as a PDF?
Yes, this checklist is available as a free PDF download. You can also use it digitally in the POPProbe mobile app for real-time data capture, photo documentation, and automatic reporting.