Audit
From PCSAR
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* a copy of the auditors' report for the year prior to the audit | * a copy of the auditors' report for the year prior to the audit | ||
** (please upload the 2015-2016 Auditors' Report to this page) | ** (please upload the 2015-2016 Auditors' Report to this page) | ||
| - | * a copy of the year-end financial statements for the year prior to the audit '''(complete for 2016-2017)''' | + | * a copy of the year-end financial statements for the year prior to the audit '''(complete for 2016-2017)''' Complete |
| - | * a copy of the audit year's year-end financial statements including '''(complete for 2016-2017)''' | + | * a copy of the audit year's year-end financial statements including '''(complete for 2016-2017)''' |
| - | ** balance sheet | + | ** balance sheet Complete |
** statement of income and expense | ** statement of income and expense | ||
| - | * the last bank statement prior to the year-end for all bank accounts '''(complete for 2016-2017)''' | + | * the last bank statement prior to the year-end for all bank accounts '''(complete for 2016-2017)''' |
* the last bill/statement prior to the year-end for all monthly accounts (e.g. credit card, Telus bills, phone.com) | * the last bill/statement prior to the year-end for all monthly accounts (e.g. credit card, Telus bills, phone.com) | ||
| - | * the bank reconciliation statement '''(complete for 2016-2017)''' | + | * the bank reconciliation statement '''(complete for 2016-2017)''' Done |
| - | * a list of all transactions for the year (e.g. Journal report) '''(complete for 2016-2017)''' | + | * a list of all transactions for the year (e.g. Journal report) '''(complete for 2016-2017)''' Done |
| - | * a copy of the most recent [[inventory]] | + | * a copy of the most recent [[inventory]] Done |
* the authorization to spend, which would be either | * the authorization to spend, which would be either | ||
| - | ** a copy of the audit year's [[budget]], as adopted by the board | + | ** a copy of the audit year's [[budget]], as adopted by the board done |
*** plus a copy of the minutes adopting and amending the budget and authorizing expenditure limits | *** plus a copy of the minutes adopting and amending the budget and authorizing expenditure limits | ||
| - | *** and any minutes authorizing expenditures over the budget | + | *** and any minutes authorizing expenditures over the budget Done |
** or, a copy of all minutes for the year | ** or, a copy of all minutes for the year | ||
* a draft copy of the current year's Auditors' Report, ready for signatures | * a draft copy of the current year's Auditors' Report, ready for signatures | ||
Revision as of 15:19, 30 November 2017
The audit of the books is done once a year prior to the Annual General Meeting.
Contents |
Selection of auditors
The auditors are two members of general membership, preferably not members of the board. They are appointed by the board (bylaws section 16) and report to the membership.
The board should pass an appointment motion of this form:
Suggested motion: Moved by _______________, seconded by _______________ to appoint _______________ and _______________ to act as auditors for the Society for the financial year ending August 31, ________.
Preparing for the audit
(Administrator for Treasurer) Prior to the audit, the following information should be provided to the auditors:
- a copy of the auditors' report for the year prior to the audit
- (please upload the 2015-2016 Auditors' Report to this page)
- a copy of the year-end financial statements for the year prior to the audit (complete for 2016-2017) Complete
- a copy of the audit year's year-end financial statements including (complete for 2016-2017)
- balance sheet Complete
- statement of income and expense
- the last bank statement prior to the year-end for all bank accounts (complete for 2016-2017)
- the last bill/statement prior to the year-end for all monthly accounts (e.g. credit card, Telus bills, phone.com)
- the bank reconciliation statement (complete for 2016-2017) Done
- a list of all transactions for the year (e.g. Journal report) (complete for 2016-2017) Done
- a copy of the most recent inventory Done
- the authorization to spend, which would be either
- a copy of the audit year's budget, as adopted by the board done
- plus a copy of the minutes adopting and amending the budget and authorizing expenditure limits
- and any minutes authorizing expenditures over the budget Done
- or, a copy of all minutes for the year
- a copy of the audit year's budget, as adopted by the board done
- a draft copy of the current year's Auditors' Report, ready for signatures
(Administrator for Treasurer) Arrange a time for the Auditors to meet with the Bookkeeper (Administrator or Treasurer), with the financial records. (complete for 2016-2017)
During the audit
During the audit, the two auditors meet with the book keeper with all the financial records.
Together they verify that:
- the current year's balance sheet balances
- the totals of the income and expense sheet add up
- the difference between the audit year's and previous year's balance sheet is the difference of the audit year's income and expense
- the bank reconciliation statement matches the bank statement
- any regular bills that show a current balance (e.g. phone bills) match the balance reported in the books
- all expenditures are authorized by either the budget or board meeting motion
The auditors will probe certain transactions, asking to see the paperwork associated with them. These transactions should include:
- any transactions in the transaction list that seem odd.
- transactions in the bank reconciliation statement that are unusually old.
- a few random transactions
The auditors will review the previous year's auditors' report and check to see whether any of the concerns listed there should also be mentioned in the current year's report.
If there are concerns for the current year, the auditors will discuss with the book keeper whether the concerns can be addressed. If so, the auditors can reconvene after any additional information or changes has been provided.
After reviewing the books,
the auditors will prepare an auditors' report.
The auditors' report will state
whether they believe
the audit year's financial statements
substantially reflects the financial state of the society at the financial year-end.
If there are any outstanding reservations or concerns
the auditors' report should include those.
The audit year-end financial statements should be attached.
The auditors' report should be signed by both auditors.
After the audit
A copy of the auditors' report should be given to the book keeper and the board. Prior to or at the annual general meeting, the auditors' report (with the year end financial statements attached) should be sent to all members of the society.
