Most nonprofit executives dread the process and wonder sometimes whether it's money well-spent.
An audit is an examination of the financial statements of an organization by an independent auditor. It's designed to express an opinion on whether the statements as a whole have been properly prepared within a framework of recognized accounting policies as to present fairly the financial position and result of the organization. Nonprofits often are able to have an audit performed at a reduced price by an audit firm that likes the work they do in the community, though keep in mind that you're competing for that kind of consideration with every other nonprofit in town. In selecting an auditor, be sure that the firm and the person who will conduct the audit are experienced in nonprofit accounting and avoid conflicts of interest. API is a national network of affiliates through which accountants volunteer their time and expertise to nonprofit organizations, small businesses and individuals who need, but cannot afford, professional accounting services.