Based on discussions we have had with CDP participants, we have compiled a list of suggestions to build more detail into your audits or reviews, and provide a clearer financial picture of your organization. Including this information from the beginning will make your Data Profile easier and more seamless to complete. We encourage you to discuss these items with your auditor.
Part 3: Other SuggestionsIndicate in the front of the audit when there are additional notes
Almost all audits and reviews contain explanatory notes, which briefly describe the organization’s mission, activities, accounting method, and financial policies. They also contain details about items in the Statement of Financial Position and Statement of Activities that may provide useful information about fixed assets, investments, loans, functional expenses and other items. When further reading would be useful, ask your auditor to indicate on the face of the statements that there is more information about a particular item in the notes.
Include clear footnotes explaining any “prior period adjustment”
A prior period adjustment is an entry in the current audit or review related to the prior year’s financial information. If your audit or review contains a prior period adjustment, ask your auditor for a footnote explaining the change and what revenue or expense line items were affected.
Provide a full set of statements for the prior year, rather than solely providing total columns
If your auditor changed or restated the prior year’s audited financial statements, or issued a new set of statements to correct a prior year error, ask your auditor to include the full statements for that year. These statements should each be broken down by restriction or functional category, rather than only containing the total columns for reference. This will help you fully to understand the changes that were made. It will also make it possible to correct information in a prior Data Profile, if needed.
For more suggestions on improving your audit’s readability, see the related articles:
