There are typically two major requirements of any audit: 1) To audit the financial statements and to provide assurance that the financial statements reflect reality and 2) To assess the effectiveness of internal controls over the financial reporting.
It is an incontrovertible truth. Nonprofits cannot survive on good intentions alone. No matter how noble the cause, every nonprofit must first establish a certain level of ongoing, financial sustainability to support their operations.
The sudden demise of FEGS has dominated water cooler talk in nonprofit offices for weeks as we all wonder, “how does an 80 year old agency with an annual budget of over $200 million crumble with so little warning?” Unfortunately, the answers being discussed reveal some common myths about the work of auditors and accountants. Let’s uncover the truth behind these popular myths.