How should a nonprofit prepare for an audit?

Start by scheduling a pre-audit meeting, gathering PBC documents, reconciling accounts, organizing digital folders, and reviewing internal controls and policies. Cook CPA Group provides a 5-step checklist to guide you through the process.

What are PBC documents in a nonprofit audit?

PBC (Prepared by Client) documents are records the auditor will request, including trial balances, bank reconciliations, donor reports, grant agreements, and board minutes. Having these ready speeds up the audit.

How do I organize files for a nonprofit audit?

Use a digital folder system such as /Audit 2025/ with subfolders for Financials, Governance, Grants, and Supporting Docs. Clearly label everything for easy access by the auditor.

Why are internal controls important for nonprofit audits?

Auditors will test your internal controls to ensure proper financial oversight. Having documented and consistently followed procedures helps build trust and avoid audit findings.

Who can help with nonprofit audit preparation?

Cook CPA Group specializes in nonprofit audit readiness, including internal control reviews and year-end financial preparation. Contact us for a consult.

Michael Huffman, Staff Accountant

Learn about Evelyn Cook, the President of Cook CPA Group based in the Sacramento, CA area. Contact us for your personal consultation today.

Michael Huffman is a Staff Accountant at Cook CPA Group, where he supports clients across audit, tax, and bookkeeping services with a commitment to accuracy, efficiency, and client care. A graduate of UC Davis with a degree in Managerial Economics, Michael brings a sharp analytical mindset and a practical understanding of business operations.

Whether preparing financial statements, assisting with audits, or supporting clients through tax season, Michael is known for his diligence, responsiveness, and clear communication. He plays a key role in helping both nonprofit and for-profit clients stay organized, compliant, and confident in their numbers.

Michael works closely with senior leadership to streamline client processes and support Cook CPA Group’s commitment to proactive, personalized service.

Michael Huffman, Staff Accountant

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