Controlling Audit Costs - Sieze Control!

On Tuesday, October 26, 2010, Jeremy Vinson of Anders, Minkler & Diehl, LLP provided insights for how nfp's can control audit costs. The basic take-away is for the nfp to take control of audit matters up- front, so that there are as few billing overrun hours as possible. Vinson's suggestions include:

• contracting with an audit firm for 3-5 years but re-evaluating the firm regularly
• negotiating audit fees by choosing an off-season time for the audit
• questioning unexpected costs
• attempting to resolve as many issues prior to the audit as possible
• completing confirmations and schedules prior to audit field work dates (asking for templates if needed)
• posting audit adjustments in a timely manner.

As with most aspects of vendor relations, continuous communication is key and will reap dividends.