We provide audit and accounting services to nonprofit organizations: audit, review, compilation, and IRS Form 990 tax services to nonprofit organizations.
The purpose of a financial audit is to provide an objective independent examination of the nonprofit’s financial statements. Auditors offer an opinion about whether the financial statements of the nonprofit organization are stated in accordance with generally accepted accounting principles (GAAP). An audit opinion provides reasonable assurance, but not absolute assurance.
A compliance audit is when an auditor is asked to form an opinion on whether or not an organization complied with the requirements of an agreement. Nonprofits are frequently subject to a compliance audit if they receive significant funding from local, state or federal governmental sources. The compliance audit is done concurrently with the financial statement audit.
A “review” is a financial statement prepared by a CPA that provides “limited assurance” that no material modifications to the financial statements are necessary for the financial statements to be in conformity with generally accepted accounting principles (GAAP). Basically, the review opinion says we looked at the financial statements and we didn’t see anything that looked wrong.