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 is a Nonprofit Annual Audit Readiness Review?
A Nonprofit Annual Audit Readiness Review is a standardized inspection form used by treasurer / finance manager to ensure consistent nonprofit operations. It contains 36 inspection points organized into 6 sections. FREE nonprofit audit readiness checklist PDF. Annual financial statement audit preparation covering account reconciliation, workpaper organization, internal controls documentation, FASB ASC 958 disclosures, and auditor communication. Download FREE template now.
How often should I use this nonprofit checklist?
This checklist is designed to be completed annually. Regular use ensures compliance with industry standards and helps identify issues before they become problems.
Can I download this Nonprofit Annual Audit Readiness Review as a PDF?
Yes, you can download this checklist as a FREE PDF for printing or offline use. The checklist includes 36 fields across 6 sections and typically takes 6-8 hours to complete.
What compliance standards does this checklist cover?
This checklist follows industry best practices for nonprofit operations to help maintain quality and safety standards.
How do I complete this nonprofit inspection checklist?
Begin by completing the header fields for Organization Name, Fiscal Year End Date, Audit Preparer Name, and CPA Firm Name. Work through each of the 6 sections, marking items Yes or No as applicable. Finally, complete the footer fields and add your signature. The entire process takes approximately 6 to 8 hours.
What are the key sections in this nonprofit checklist?
This nonprofit checklist is organized into 6 key sections: Account Reconciliations, Workpapers and Supporting Documentation, Nonprofit-Specific Disclosures, Single Audit Requirements, Internal Controls Documentation, Auditor Communication and Scheduling. Each section contains specific inspection points that treasurer / finance manager must verify. The structured layout ensures nothing is missed during nonprofit inspections and makes the process efficient, typically taking 6-8 hours to complete.
Who should use this Nonprofit Annual Audit Readiness Review?
This checklist is primarily designed for treasurer / finance manager working in nonprofit operations. However, it is also valuable for quality assurance teams, safety officers, compliance managers, and supervisors who need to verify that nonprofit standards are being met. Organizations of all sizes can benefit from using this Nonprofit Annual Audit Readiness Review to maintain consistency and accountability.