What is a Financial Audit?
An audit is an in-depth financial examination completed by a Certified Public Accountant (CPA). We examine your organization’s financial records and provide you with the assurance of the accuracy of your financial statements and express an opinion of the financial statements of the organization.
Covington+ Associates CPAs Inc. offers audits, reviews and compilations to a wide variety of nonprofit organizations.
Financial Audits for Non-Profit Organizations:
An audit is the highest level of a financial statement service. Depending on the requirements of the organization by imposed influences, the organization would hire an independent CPA to perform the audit. An audit examines every transaction that took place within the past year, or a sample of those transactions to report on their accuracy and reliability. In this report, by obtaining reasonable assurance the auditor will provide security that the financial statements are free from material misstatements, error, and fraud.
At the end of the audit, the auditor will present an opinion about the financial situation of the organization to share with investors, creditors, and grantors.
Reviews for Nonprofit Organizations:
The main difference between an audit and a financial review is that the review is limited in assurance for the financial statements to be in conformity with the accounting standards. The financial review is performed by an independent CPA; however, no written opinion is given about the state of the organization’s financial situation.
Compilations for Nonprofit Organizations:
A compilation is an examination of an organization’s financial situation with no official assurance or opinion given. The CPA can assist the management in presenting financial information to be in conformity with accepted accounting standards.
When are Financial Audits for Non-Profit Organizations Needed?
Audits are typically performed on a yearly basis and serve the purpose of assuring investors, creditors, and grantors that the financial situation of your organization is accurate, reliable and honest. Different states also require financial audits for non-profit organizations depending on their amount of annual contributions.
When do you need a financial audit in Florida?
- ≥$1,000,000 in annual contributions and above require a financial audit completed by an independent Certified Public Accountant (CPA)
- $500,000 – $999,999 in annual contributions requires either a financial audit or financial review.
- < $500,000 in annual contributions can file an audit, review or compilation
When do you need a financial audit in Washington, DC?
Washington, DC does not require state mandated audits, reviews or compilations for any level of financial contributions.
Financial Audits for Non-Profit Organizations Benefit from Cloud Accounting:
Cloud accounting has a positive side effect for organizations that need to be audited. Organizations that are already cloud integrated receive significantly better prices on their audits compared to ones that rely on traditional sources of financial accounting. This decrease in price is due to all financial documentation being stored in one place. Since there is no paper trail to dig through and the software verifies transactions, we can save you hours spent on the audit.
Covington+ Associates CPAs Inc. specializes in non profit organization financial audits due to our proprietary auditing process that streamlines the procedure saving both your time and your organization’s money. Contact Us or Book an Advising appointment for more information about our Financial Audits for Nonprofits.