An audit is to protect both the treasurer and the membership. If the checkbook allows, all checks returned from the bank can be taped back with their respective stubs. Auditors will need the most current statement, treasurer's record book, copies of financial statements, receipts issued by the treasurer, receipts for expenditures and any other information pertinent to the financial status. The approved budget should be provided to determine if monies were spent on approved allocations. Audits should be conducted annually or when there is a change in the office of treasurer.
Local bylaws provide for the action.
In the event that a unit has followed all of the outlined safeguards and the annual audit reveals there are unaccounted funds, there are steps you may take. Make no public accusations. Contact the bonding company with all known details. If the unit has no bonding, request an explanation from the treasurer. If necessary, get professional advice from the local police department, district attorney, local magistrate or private legal counsel.