Editing Audit
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The audit of the books is done once a year prior to the Annual General Meeting. | The audit of the books is done once a year prior to the Annual General Meeting. | ||
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The auditors are two members of general membership, preferably not members of the board. | The auditors are two members of general membership, preferably not members of the board. | ||
- | + | They are appointed to the position for one year by the membership at a general meeting | |
- | They are appointed by the | + | |
and report to the membership. | and report to the membership. | ||
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== Preparing for the audit == | == Preparing for the audit == | ||
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Prior to the audit, the following information should be provided to the auditors: | Prior to the audit, the following information should be provided to the auditors: | ||
- | * a copy of the | + | * a copy of the current year's financial statements including |
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** balance sheet | ** balance sheet | ||
** statement of income and expense | ** statement of income and expense | ||
- | + | * the year-end bank statement for all accounts | |
- | * | + | |
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* the bank reconciliation statement | * the bank reconciliation statement | ||
- | * a list of all transactions for the year ( | + | * a list of all transactions for the year (e.g. General Ledger report) |
- | + | * a copy of the most recent inventory | |
- | + | * a copy of the ''previous'' year's financial statements | |
- | * the | + | |
- | * a copy of the | + | |
* the authorization to spend, which would be either | * the authorization to spend, which would be either | ||
- | ** a copy of the | + | ** a copy of the current year's budget |
- | *** plus a copy of the minutes adopting | + | *** plus a copy of the minutes adopting the budget and authorizing expenditure limits |
*** and any minutes authorizing expenditures over the budget | *** and any minutes authorizing expenditures over the budget | ||
** or, a copy of all minutes for the year | ** or, a copy of all minutes for the year | ||
- | * a | + | * a copy of the previous year's auditors' statement |
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== During the audit == | == During the audit == | ||
- | During the audit, the two auditors meet with the | + | During the audit, the two auditors meet with the book keeper |
with all the financial records. | with all the financial records. | ||
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* the current year's balance sheet balances | * the current year's balance sheet balances | ||
* the totals of the income and expense sheet add up | * the totals of the income and expense sheet add up | ||
- | * the difference between the | + | * the difference between the current year's and previous year's balance sheet is the difference of the current year's income and expense |
- | * the bank reconciliation statement matches the bank statement | + | * the bank reconciliation statement matches the bank statement |
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* all expenditures are authorized by either the budget or board meeting motion | * all expenditures are authorized by either the budget or board meeting motion | ||
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After reviewing the books, | After reviewing the books, | ||
- | the auditors will prepare an auditors' | + | the auditors will prepare an auditors' statement. |
- | The auditors' | + | The auditors' statement will state |
whether they believe | whether they believe | ||
- | the | + | the current year's financial statements |
- | substantially reflects the financial state of the society | + | substantially reflects the financial state of the society. |
If there are any outstanding reservations or concerns | If there are any outstanding reservations or concerns | ||
- | the auditors' | + | the auditors' statement should include those. |
- | + | ||
- | The | + | The auditor's statement should be signed by both auditors. |
== After the audit == | == After the audit == | ||
- | A copy of the auditors' | + | A copy of the auditors' statement should be given to the book keeper and the board. |
- | Prior to | + | Prior to the annual general meeting, the auditors' statement should be sent |
- | should be sent | + | |
to all members of the society. | to all members of the society. | ||
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