Certain nonprofits are required to undergo an independent audit on an annual basis. An independent audit is needed if requested by a federal, state, or local governing body, if your nonprofit has more than $750,000 in federal expenditures, or as a condition of receiving a loan or grant. An Independent audit provides a professional opinion of a nonprofit organization’s financial statements, attesting that they are fairly presented and in accordance with generally accepted accounting principles (GAAP). An independent audit gives reasonable assurance about whether the financial statements are free of material misstatements.
Archive: March 2018
When Does a Retirement Plan Need an Annual Audit?
In accordance with the Employee Retirement Income Security Act (ERISA), retirement accounts with more than 100 eligible participants at the start of the plan year are considered large retirement funds. These large retirement funds require that an annual audit of plan financial statements be conducted by an independent, qualified public accountant.