AICPA Quality Control Review Checklist for Nonprofit

This task involves understanding and documenting the mission and scope of the nonprofit organization. It is important to clarify the organization's purpose and the extent of its activities. This understanding will help guide the overall quality control review process and ensure that all relevant aspects are considered. What is the mission and scope of the nonprofit organization? Are there any specific goals or objectives? How does the organization operate and what are its key areas of focus?

This task involves identifying and understanding the key financial transactions and processes of the nonprofit organization. It is important to have a clear understanding of how the organization's finances are managed and what processes are in place to ensure accuracy and accountability. This understanding will help identify any potential areas of risk or concern. What are the key financial transactions of the nonprofit organization? How are these transactions recorded and managed? What processes are in place to ensure accuracy and accountability?

This task involves reviewing previous audit results and management letters of the nonprofit organization. It is important to understand any findings or recommendations from previous audits and management letters in order to assess the current state of the organization. This review will help identify any recurring issues or areas for improvement. What were the findings and recommendations from previous audits? Have any issues been resolved or are they still outstanding? What action has been taken to address any concerns?

This task involves identifying any material new laws or regulations that may impact the nonprofit organization. It is important to stay informed about any changes in laws or regulations that could affect the organization's operations and reporting requirements. This identification will help ensure compliance and address any necessary adjustments. Are there any recent changes in laws or regulations that impact the nonprofit organization? What are the key implications of these changes? How has the organization responded to these changes?

This task involves reviewing the financial statements of the nonprofit organization for appropriate presentation and disclosures. It is important to ensure that the financial statements accurately represent the organization's financial position and results of operations. This review will help identify any potential misstatements or omissions. Are the financial statements presented in accordance with the applicable accounting standards? Are all required disclosures included? Do the financial statements provide a true and fair view of the organization's financial position and results of operations?

This task involves performing an analytic review of the financial data of the nonprofit organization. It is important to analyze the financial data to identify any significant trends, unusual fluctuations, or potential anomalies. This analysis will help assess the reasonableness and accuracy of the financial information. What are the key financial ratios and trends? Are there any significant fluctuations or anomalies? What factors could explain these observations?

This task involves verifying selected transactions of the nonprofit organization through source documents. It is important to review the underlying source documents, such as invoices, receipts, and contracts, to ensure that the recorded transactions are supported by appropriate documentation. This verification will help validate the accuracy and completeness of the financial records. What are the selected transactions to be verified? What source documents are available to support these transactions? Are there any discrepancies or inconsistencies?

This task involves performing a risk assessment of the nonprofit organization and identifying areas of higher risk. It is important to evaluate the risks that may affect the organization's financial statements and operations. This assessment will help prioritize areas for further examination and testing. What are the key risks facing the nonprofit organization? How likely are these risks to occur and what is their potential impact? What controls are in place to mitigate these risks?

This task involves performing tests of the internal control systems of the nonprofit organization. It is important to assess the effectiveness of the organization's internal controls in preventing and detecting errors, fraud, or other irregularities. This testing will help identify any weaknesses or deficiencies in the control environment. What are the key internal control systems to be tested? How will these tests be conducted? What are the expected outcomes? Are there any weaknesses or deficiencies identified?

This task involves discussing the preliminary results of the quality control review with management of the nonprofit organization. It is important to provide management with an overview of the findings and seek their input and feedback. This discussion will help ensure that all relevant information is considered and that management's perspective is taken into account. What are the preliminary findings of the quality control review? How do these findings align with management's expectations? What additional information or clarification is needed?

This task involves identifying any potential issues or concerns in the quality control review of the nonprofit organization. It is important to be proactive in identifying and addressing any areas of risk or non-compliance. This identification will help ensure that necessary actions are taken to rectify any issues or concerns. What are the potential issues or concerns identified? What are the underlying causes or contributing factors? What actions are recommended to address these issues?

This task involves preparing a draft of the audit report and management letter for the nonprofit organization. It is important to document and communicate the results of the quality control review to the relevant stakeholders. This communication will help provide transparency and accountability. What are the key findings and recommendations to be included in the audit report and management letter? How should the information be organized and presented? What are the timelines for review and approval of the draft documents?

This task involves discussing the final results and recommendations of the quality control review with management of the nonprofit organization. It is important to provide management with a comprehensive overview of the findings and recommendations and seek their input and feedback. This discussion will help ensure that all relevant information is considered and that management's perspective is taken into account. What are the final results and recommendations of the quality control review? How do these align with management's expectations? What additional information or clarification is needed?

This task involves obtaining a management representation letter from the nonprofit organization. It is important to document management's acknowledgement of their responsibilities for the financial statements and representations made during the quality control review. This letter will help provide assurance and support the audit opinion. What are the key representations to be included in the management representation letter? How should the letter be organized and structured? What is the process for review and approval by management?

This task involves issuing the final audit report for the nonprofit organization. It is important to communicate the results of the quality control review to the relevant stakeholders in a timely manner. This communication will help provide transparency and accountability. What are the key findings and recommendations to be included in the final audit report? How should the information be organized and presented? What are the timelines for review and approval of the final report?

This task involves documenting and archiving the workpapers and notes from the quality control review for the nonprofit organization. It is important to maintain a clear and organized record of the review process for future reference and reference. This documentation will help ensure that the review is transparent and reproducible. What are the key workpapers and notes to be documented and archived? How should the information be organized and stored? What is the process for review and approval of the documentation?