Preparing for your annual auditPreparing for your annual auditApril 12, 2006April 12, 2006

Presented by:Presented by:

Tim Abercrombie, CPATim Abercrombie, CPAAbercrombie & Associates, LLCAbercrombie & Associates, LLC

Preparing for your annual auditPreparing for your annual audit

TopicsTopics

Auditor reportAuditor reportAuditor requested schedules Auditor requested schedules Establishing Internal ControlsEstablishing Internal ControlsPreparation for the auditPreparation for the auditFinancial statementsFinancial statements

Preparing for your annual auditPreparing for your annual audit

AuditorAuditor’’s Reports Report

Objective is forming an opinion on the Objective is forming an opinion on the financial statementsfinancial statementsUnderstanding internal controlsUnderstanding internal controlsAre the financial statements fairly statedAre the financial statements fairly stated

Preparing for your annual auditPreparing for your annual audit

Auditor Requested SchedulesAuditor Requested Schedules

Significant accountsSignificant accountsUnusual transactionsUnusual transactionsHigh risk areasHigh risk areas

Preparing for your annual auditPreparing for your annual audit

Internal ControlsInternal Controls

DefinitionDefinitionPurpose Purpose How to establish with limited staff?How to establish with limited staff?

Preparing for your annual auditPreparing for your annual audit

Preparation for the annual audit Preparation for the annual audit

Be readyBe readyCommunicate Communicate TimelyTimelyAccurateAccurate

Preparing for your annual auditPreparing for your annual audit

Monthly ProceduresMonthly Procedures

Cash and Investment account Cash and Investment account reconciliationsreconciliationsRevenue reconciliationRevenue reconciliationSalary allocation and reconciliationSalary allocation and reconciliationGrant reconciliationGrant reconciliation

Preparing for your annual auditPreparing for your annual audit

Financial StatementsFinancial Statements

Statement of financial positionStatement of financial positionStatement of activitiesStatement of activitiesCash flow statementCash flow statementStatement of functional expensesStatement of functional expensesFootnotesFootnotes

Preparing for your annual auditPreparing for your annual audit

Thank you for your attentionThank you for your attention

I appreciate your attendance and participation.I appreciate your attendance and participation.

If you have additional questions you may email If you have additional questions you may email me: me: tim@abercrombiellc.comtim@abercrombiellc.comPlease visit our site: Please visit our site: www.abercrombiellc.comwww.abercrombiellc.com