Audit Checklists and Policies
The following are resources for church audit preparation:
Church Annual Accessibility Audit Checklist Form (freechurchforms.com)
Church Annual Internal Audit Checklist Form (freechurchforms.com)
Audit Policies and Procedures (freechurchforms.com)
Church Audit Preparation Workshop
A church audit is an independent evaluation of the financial reports and records of the internal controls of the local church by a qualified person or persons for the purpose of reasonably verifying the reliability of financial reporting, determining whether assets are being safeguarded, and determining compliance with the law, and local church policies and procedures. Conducting an audit is not a symbol of distrust. It is a mark of responsibility. It is good stewardship demonstrated for all to see. It is a message to local church donors that you care about their gifts. How do you prepare for an audit? What is the best way to be organized to be prepared for a yearly audit?
Lesley Williams, CPA, led this one-hour workshop in July 2022. She has extensive experience in church auditing and guided us through the steps for being prepared to have a church audit performed.
View Workshop Slide Deck (examples come from The Episcopal Church; the steps apply to any congregation)
Episcopal Church
Workshop resources from The Episcopal Church and The Episcopal Church in Colorado:
The Episcopal Church in Colorado 2022 Administration and Finance Handbook
See page 17 for information on audits, including common “improvement opportunities”.
Manual of Business Methods in Church Affairs
Chapter VI covers audits in depth.
The Episcopal Church in Colorado Alternate Audit Procedure
Auditor is required to complete a questionnaire.
Only available to churches with operating income less than $250,000
Ideally the auditor should be able to answer all questions in the affirmative
Presbyterian Church (U.S.A.)
The Church Treasurer’s Manual (PC(USA) Financial Network Group, rev. 2018). Chapter 6 covers financial reviews, external audits, and internal reviews; the Book of Order requires an annual full financial review.
Evangelical Lutheran Church in America
Congregational Audit Guide: who can conduct an audit, how to start, and how to handle payroll and tax records
The United Methodist Church
Local Church Audit Guide (GCFA, 5th edition): procedures and internal control recommendations
Prepare your church for an audit (ResourceUMC)
Your diocese, presbytery, synod, or annual conference may have its own audit requirements and forms, so check with them too.