FAQs > OPERATIONS > FINANCIAL AUDIT
How can I make an independent financial audit less expensive?
Answered by: Ben Bullock
While having an independent financial audit performed is a best practice, it can be very difficult for organizations with annual revenues of less than $500,000. Sometimes, funders may require audits without including the costs for them in the grant.
A big part of why audits are so expensive is that in many cases, the auditor has to help the nonprofit get their financial records collected into a form that can be audited. If your records are already in good condition (i.e., all revenue receipts and expense disbursements are well documented and organized, and regular financial reports are prepared) and are ready to be audited, that can help reduce costs.
There are other kinds of financial assurance reports that accountants can produce that require less testing but provide less assurance. You may be able to work with your funder to see if they will accept a lower level of assurance.
Here’s a link to a great article on reducing the cost of your audit: http://www.blueavocado.org/content/seven-ways-reduce-your-audit-costs
You may also want to visit our Business Partner Directory. Select, “Accounting, Auditing, and Bookkeeping” and search for the folks we work with that provide those services.