What you should know about independent audits

Description

Abstract: Making a nonprofit’s financial results public is a key to the transparency required of many nonprofits today. And an independent audit of those statements can give granting agencies, donors and others confidence that the numbers are accurate and properly reported. This article focuses on audits of financial statements performed by independent CPA firms. It discusses Generally Accepted Auditing Standards (GAAS) and Generally Accepted Government Auditing Standards, along with alternatives to a GAAS audit. A sidebar describes two less-expensive alternatives that still involve input from an independent CPA firm.