Financial statement audits & reviews for federal and state compliance

It is a federal requirement to conduct an independent audit if the the Nonprofit expends $750,000 or more in federal funds in a single year. Moreover, some state government contracts may require an audit as well as requiring charitable nonprofits to submit a copy of audited financial statements in conjunction with the process of registering the charitable nonprofit so that it is able to lawfully engage in fundraising activities in that state.

California

Audit Required: Yes

Statute: A charitable corporation with gross annual revenue of $2 million or more AND that is already required to file report(s) with the General Attorney must file an audited financial statement prepared by an independent CPA.

-        Audit—provides highest level of assurance a CPA can provide; many businesses and organizations require annual audits of their financial statements by independent accountants. 

  • Verify accuracy of information in financial statements
  • Provide opinion on fairness of statements
  • Provide assurance of data testing
  • Provide written documentation of audit conformity with generally accepted accounting principles (GAAP)

-        Review – offers limited level of assurance regarding your business’s financial statements and internal control over financial reporting, consisting of analytical procedures and inquiries of management.

-        Compilation – without expressing an opinion or assurance on financial statements; process of obtaining financial data from your personnel and converting that data and information into organized, useful financial statements.