Audits are essential to your organization’s well-being

Description

Abstract: Audits take considerable time and effort, but they provide nonprofits with fair assessments of their financial health, in addition to revealing vulnerabilities such as weak internal controls, insufficient cash reserves and poor investment policies. And although the newly revised IRS Form 990 doesn’t mandate them, the IRS does ask organizations to discuss their audit activities, as well as the role their board plays in them. This article looks at the difference between internal and external audits, the role of the audit committee, and how to prepare for an audit.