An organization should produce a monthly income and expense statement, balance sheet, and budget status report. These should go to the board of directors and executive committee in advance of their meetings. Copies should also be sent monthly to the finance committee. The audit should also go to the board with ample opportunity for discussion. At least some members of the board should fulfill the functions of an audit committee.
Some organizations have a separate audit committee.
In forty years of nonprofit agency administration, I have had some pretty rude awakenings and learned some pretty sad lessons. Let me summarize these lessons from the school of financial hard knocks. The lessons and the consequences apply to both board and staff. Get regular monthly reports and study them carefully. Be sure that the reports are accurate.