California Nonprofit Audits
Independent financial statement audits for California charities and nonprofit organizations, performed by a licensed California CPA firm. If your organization has crossed the Nonprofit Integrity Act threshold or a funder is asking for audited financials, start with a scoping call.
Tell us where to reach you. We will contact you to discuss your organization, the audit requirement, and what the engagement would involve.
Request Received
Our team will contact you to schedule your scoping call. For anything urgent, call (951) 216-3121.
The statutory trigger. Under California's Nonprofit Integrity Act, a charity registered with the California Attorney General that receives $2 million or more in gross revenue in a fiscal year must obtain an independent audit of its financial statements by a licensed CPA and make the audited statements available to the Attorney General and the public. Separately, many private foundations, government contracts, and lenders require audited financials as a condition of funding, and organizations spending $750,000 or more in federal awards fall under Uniform Guidance Single Audit requirements. If any of these apply to your organization, an independent audit is not optional.
From First Call to Board-Ready Report
Scoping Call
We discuss your organization, revenue sources, funding requirements, and prior audit history to define the scope of the engagement.
Engagement Letter
A written engagement letter sets out the scope, responsibilities, and terms before any work begins.
Fieldwork
Audit procedures are performed remotely for organizations anywhere in California, with onsite fieldwork available in Southern California.
Board-Ready Audit Report
You receive an audit opinion, financial statements, and a management letter written to be understood by your board and your funders.
Engagement Standards
Audits are performed under AICPA Generally Accepted Auditing Standards, and where a funder or government agency requires it, under Government Auditing Standards (the Yellow Book / GAGAS), including Single Audits under the Uniform Guidance for organizations expending federal awards.
Scope of a Nonprofit Financial Statement Audit
Financial Statement Audit
Examination of the statement of financial position, activities, functional expenses, and cash flows, resulting in an independent audit opinion.
Net Asset and Restriction Testing
Verification that donor-restricted and board-designated funds are tracked, released, and reported correctly.
Single Audit (Uniform Guidance)
For organizations expending $750,000 or more in federal awards, compliance testing of major programs and the Schedule of Expenditures of Federal Awards.
California Attorney General Compliance
Audited statements prepared to satisfy Registry of Charities and Fundraisers filing requirements under the Nonprofit Integrity Act.
Form 990 Consistency
Reconciliation of audited figures to your Form 990 so that public filings and audited statements tell the same story.
Management Letter
Practical observations on internal controls and financial processes, written for an executive director and board rather than for accountants.
Nonprofit Audit FAQ
Schedule a Nonprofit Audit Scoping Call
Talk directly with the CPA who will sign your audit report.