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Build · Month 7
Why Use a Third-Party Auditor
Independent audits build donor and grantor trust.
Overview
An independent audit is the single most powerful trust signal a nonprofit can send — and many grants and government contracts require one. This module explains what an audit actually is, why the auditor must be independent of your organization, what to expect during an audit, how to prepare so it costs less, and when you're required to have one. You'll understand why doing your own audit defeats the purpose.
What you'll be able to do
- Understand what a financial audit is and isn't
- Explain why auditor independence is the whole point
- Know when an audit is required vs. voluntary
- Prepare for an audit so it costs less and goes smoothly
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