Audit Readiness Guide

Audit Readiness Guide

What to prepare and expect during your nonprofit audit

🗓️ Audit Timeline Overview
Pre-Audit Planning
3-4 months before
Upcoming
Document Preparation
2-3 months before
Current Phase
Pre-Audit Review
1 month before
Upcoming
Fieldwork
1-2 weeks
Upcoming
Final Review
2-4 weeks after
Upcoming

Total Tasks

0

Completed

0

Critical Tasks

0

Days Until Audit

Select Your Audit Type

Financial Statement Audit
Full independent audit of financial statements
Single Audit
Required if federal expenditures ≥ $750,000
Review Engagement
Limited assurance review of financial statements
Compilation
Basic preparation without assurance
📊
Financial Records Preparation
Organize all financial records and ensure they are complete, accurate, and properly supported. These form the foundation of your audit.
General ledger and trial balance
Complete, year-end trial balance with all account details. Ensure all adjusting entries are posted and accounts reconciled.
Required: 1 month before audit
Bank reconciliations for all accounts
Month-end bank reconciliations for entire fiscal year, including all checking, savings, investment, and credit card accounts.
Required: 2 weeks before audit
Accounts receivable aging and analysis
Detailed aging of all receivables with documentation for significant balances. Include grant receivables and pledges receivable.
Required: 2 weeks before audit
Accounts payable and accrued expenses
Complete listing of all outstanding payables and accrued expenses as of year-end. Include search for unrecorded liabilities.
Required: 2 weeks before audit
Fixed asset schedules and depreciation
Detailed fixed asset register showing acquisitions, disposals, and depreciation calculations. Include depreciation methodology documentation.
Required: 1 week before audit
Key Financial Documents:
  • Monthly financial statements
  • Cash flow statements
  • Investment statements
  • Loan agreements and schedules
  • Grant award letters
  • Donor restriction documentation
  • Endowment fund agreements
  • Insurance policies
  • 📁
    Supporting Documentation
    Gather all supporting documents that auditors will need to verify transactions and test internal controls. Organization is key to audit efficiency.
    Board meeting minutes and resolutions
    All board and committee meeting minutes for the fiscal year. Include any special resolutions, compensation decisions, and significant contract approvals.
    Required: 1 month before audit
    Payroll records and employee files
    Payroll registers, W-2s, 1099s, employee authorization forms, and benefit enrollment documentation for all staff.
    Required: 2 weeks before audit
    Grant agreements and compliance documentation
    All grant agreements, amendments, and compliance reports. Include federal grant documentation if subject to single audit.
    Required: 2 weeks before audit
    Major contracts and agreements
    Service contracts, lease agreements, vendor contracts, and any other significant agreements entered during the year.
    Required: 1 week before audit
    Legal correspondence and documentation
    Any legal matters, pending litigation, attorney letters, and correspondence with regulatory agencies.
    Required: 1 week before audit
    Additional Supporting Documents:
  • Donor acknowledgment letters
  • Special event documentation
  • Travel and expense reports
  • Purchasing documentation
  • IT security policies
  • Conflict of interest forms
  • Whistleblower policy
  • Document retention policy
  • 🔒
    Internal Controls Assessment
    Document your internal control procedures and prepare for auditor testing. Strong controls reduce audit risk and improve organizational efficiency.