Do you prepare internal financial statements for your board of directors on a monthly, quarterly or other periodic basis? Later, at year end, do your auditors always propose adjustments? What’s going on? Most likely, the differences are due to cash basis vs. accrual basis financial statements, as well as reasonable estimates proposed by your auditors
Financial Statements
Three Audit Issues to Understand When Preparing Your Nonprofit’s Financial Statements
By Chip Schweiger on
Posted in Tax and Accounting Desk
Annual financial statements that have been audited by a professional auditor can help assure funders and lenders that your not-for-profit is financially sound. Here are three critical audit issues to understand when preparing financial statements:
1. The auditor’s role
Auditors are responsible for expressing an opinion on financial statements. Beyond that, they’re responsible for obtaining …