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Non-Profits: How to Choose an Auditor

Sikich

Dec 13 2012

2 min read

Being a part of a non-profit organization, you know how important it is to timely and accurately report your financial information. These include how much money you are receiving in donations and for what activities those funds are being used. Even though many non-profits are not required to have audits performed, your organization’s bylaws may require one. But how do you go about selecting an auditor?

1. Qualifications: First and foremost, find a few potential candidate firms that have the capabilities for which you are looking and dig into their qualifications. Who are the individual staff members with whom you’ll be working directly?

2. Experience: Do they have audit experience in the non-profit sector, or even better, do they have dedicated teams that only work with non-profit organizations? What is their reputation in the industry?

3. Geography: Is it important to have a local auditor, or can you work remotely with one? If you want a local auditor, does the firm have an office in your geographic area?

4. Education: Regulations and laws are constantly changing. How do your audit candidates keep current in the non-profit sector? Are they personally involved with any non-profit organizations at the leadership level?

5. Services: Is it possible that you’ll want or require other services in the future, other than audits? If so, look into a firm that can provide a wide range of services—whether that’s additional tax-related services or even human resources, marketing or technology consulting. Keep in mind that these additional services do not create a conflict of interest with the audit.

The bottom line: Choose an auditor with whom you are comfortable working. Take the time to request proposals, examine what each firm has to offer, engage in interviews with candidates and ensure that your selection is the best fit.

This publication contains general information only and Sikich is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or any other professional advice or services. This publication is not a substitute for such professional advice or services, nor should you use it as a basis for any decision, action or omission that may affect you or your business. Before making any decision, taking any action or omitting an action that may affect you or your business, you should consult a qualified professional advisor. In addition, this publication may contain certain content generated by an artificial intelligence (AI) language model. You acknowledge that Sikich shall not be responsible for any loss sustained by you or any person who relies on this publication.

About the Author

Sikich

From accounting, tax and assurance to technology and advisory, Sikich offers a unique formula of professional services to businesses and organizations across the country. By pairing subject matter expertise with the real-world experience gained as entrepreneurial leaders, we provide clarity to your complex challenges and solutions to strengthen every dimension of your business.