What are the common questions about nonprofit audits?

What is a nonprofit audit?

A nonprofit audit is an independent examination of a nonprofit organization's financial statements to ensure accuracy and compliance.

Why do nonprofits need to undergo audits?

Nonprofits undergo audits to maintain transparency, build trust with donors, and ensure compliance with regulations.

How often should a nonprofit be audited?

Typically, nonprofits should be audited annually, especially if they receive significant funding or donations.

What are the main components of a nonprofit audit?

The main components include financial statement review, internal control assessment, and compliance checks.

Can small nonprofits skip audits?

While small nonprofits may not be required to undergo audits, it's often recommended for accountability and transparency.