The audit dance – Nonprofit and auditor roles are distinct but complementary

Description

Abstract: A nonprofit and its external auditor are somewhat like dance partners performing a well-choreographed routine. To execute the dance properly, each dancer must complete specific moves and coordinate timing with his or her partner. Likewise, a not-for-profit and its audit firm each have particular duties in the audit process but share the same end goal: a set of financial statements that fairly present the organization’s financial condition and operating results. This article defines the responsibilities of each party and shows how the board can be used as a resource.