Are You Prepared For Your Annual Audit?

The Goal

You and your auditor want the smoothest, quickest, and most efficient audit. The better prepared you are, the more you improve your chances of this being the case. As Abraham Lincoln said, "If I had eight hours to chop down a tree, I'd spend six sharpening my axe."

The Basics

In addition to the usual and obvious documents needed for your audit (bank reconciliations, invoices, pay registers, etc.), other items should be considered. Although not all-inclusive, these are some tasks to add to your pre-audit to-do list:

Transactions and Disclosures

• Ensure that beginning net assets agree with the prior year's audited ending net assets.
• Ensure inter-fund accounts and net assets released from restrictions net to zero.