Nonprofit Annual Audit Readiness Review
Well-prepared audits reduce audit fees, minimize findings, and demonstrate financial health to funders. This readiness review prepares the organization for a clean, efficient financial statement audit by ensuring all accounts are reconciled and workpapers organized before the auditors arrive.
- Industry: Nonprofit
- Frequency: Annually
- Estimated Time: 6-8 hours
- Role: Treasurer / Finance Manager
- Total Items: 28
Account Reconciliations
Verify all accounts are reconciled as of year-end.
- All bank accounts reconciled to bank statements as of year-end?
- Investment accounts reconciled to custodian statements?
- Accounts receivable aging schedule prepared and reconciled?
- Accounts payable schedule prepared and reconciled?
- Pledges receivable schedule with collectibility assessment prepared?
Workpapers and Supporting Documentation
Organize workpapers for auditor review.
- Workpaper index or table of contents prepared?
- Adjusted trial balance prepared and reconciled to financial statements?
- Lead schedules for all balance sheet accounts prepared?
- Year-end journal entries prepared and supported?
- Prior year workpapers available for auditor reference?
Nonprofit-Specific Disclosures
Prepare nonprofit-specific audit requirements.
- Net asset roll-forward schedule with restrictions detail prepared per FASB ASC 958-205?
- Statement of functional expenses with program/M&G/fundraising allocation prepared?
- Contribution revenue schedule distinguishing grants, individual gifts, and special events?
- Related party transactions schedule per FASB ASC 850 prepared?
- Subsequent events review completed through audit report date?
Single Audit Requirements
Prepare for single audit if required.
- Schedule of Expenditures of Federal Awards (SEFA) prepared if over $750,000?
- Federal programs reviewed for major program determination under 2 CFR 200.518?
- Prior year single audit findings remediated and corrective action plan updated?
- Federal grantor confirmations prepared if requested by auditors?
Internal Controls Documentation
Document internal controls for auditor review.
- Key internal controls documented in narrative or flowchart format?
- Separation of duties in cash handling and check signing documented?
- Approval and authorization controls for expenditures documented?
- Prior year management letter findings remediated?
Auditor Communication and Scheduling
Prepare for auditor engagement.
- Engagement letter signed and audit fee agreed?
- Prepared by client (PBC) list items completed?
- Audit fieldwork and report delivery timeline confirmed?
- Management representation letter topics reviewed in advance?
- Audit committee or board chair available for auditor exit meeting?
Related Nonprofit Checklists
- Nonprofit Annual Budget Development and Board Oversight
- Nonprofit Financial Internal Controls Annual Review
- Nonprofit Gift Acceptance Policy Compliance Review
- Nonprofit Monthly Financial Reporting Package
- Nonprofit Fundraising Event Planning and Compliance Checklist
- Nonprofit Volunteer Background Screening and Risk Assessment
- Nonprofit Volunteer Scheduling and Retention Program Audit
- Nonprofit Event Day Volunteer Management
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 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
- Nonprofit Payroll Processing and Compliance Review - FREE Download
Why Use This Nonprofit Annual Audit Readiness Review?
This nonprofit annual audit readiness review helps nonprofit teams maintain compliance and operational excellence. Designed for treasurer / finance manager professionals, this checklist covers 28 critical inspection points across 6 sections. Recommended frequency: annually.
Frequently Asked Questions
What does the Nonprofit Annual Audit Readiness Review cover?
This checklist covers 28 inspection items across 6 sections: Account Reconciliations, Workpapers and Supporting Documentation, Nonprofit-Specific Disclosures, Single Audit Requirements, Internal Controls Documentation, Auditor Communication and Scheduling. It is designed for nonprofit operations and compliance.
How often should this checklist be completed?
This checklist should be completed annually. Each completion takes approximately 6-8 hours.
Who should use this Nonprofit Annual Audit Readiness Review?
This checklist is designed for Treasurer / Finance Manager 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.