Audit Planning Calendars Can Make Audits Less Stressful and More Efficient [SUBSCRIBERS-ONLY]

Financial statement audits have natural “built-in tensions” between nonprofit organizations and their independent auditors. These tensions are advantageous from a checks and balances point of view but can lead to communication challenges if not properly managed. Agreeing on a detailed planning calendar at the front end of the audit will make for a less stressful and more efficient audit process.

Audit planning calendars, like finance calendars, can help mitigate “controllable” tensions associated with requests for information and scheduling alignment. It is important to recognize that the two parties in the audit process have separate and sometimes differing needs and priorities. Discussing and agreeing on key actions and deliverable dates ahead of time will enhance understanding of each party’s perspective and encourage cooperation.

Nonprofits should be proactive and prepare their own audit planning calendars. Do not rely on general templates provided by the auditor or from other sources, as an audit planning calendar should be scaled and constructed to meet the needs of your organization and align with its meeting schedules.

Divide your audit planning calendar into chronological sections such as: