THE BENEFITS OF A CHURCH AUDIT

1.     An Audit is a DETECTIVE control. Errors and irregularities may be detected during the course of the audit.

2.     An Audit is a PREVENTIVE control. When workers know that the church will be audited annually, they are less likely to make errors and irregularities.

3.     It provides advice on the following:
     a. Pastors's housing and parsonage allowance.
     b. Voluntary withholdigns.
     c. Treating of expenses and reimbursement cost.
     d. Employment Status of Pastor.
     e. Calculation of Social Security Taxes.

4.     The proper advice on the Pastor's peronal Income Tax returns will reduce the risk of a church audit. IRS agents are using the Pastor's Tax return to get into the church's business.

5.     Provide Recommendations on Payroll Tax Compliance with IRS guidelines.

6.      Have available an independent report of the Church's financial condition for the congregation.
     a. Independent audits add credibility to the church's controls over cash and allocation of cash to proper funds.

7.      Support the integrity of Church Management.
     a. Financial Statements are blessed by the CPA.
     b. Create support for Membership and fund raisers.

8.     Determine the real Net worth of the Church for insurance and bank purposes.
     a. Net Worth
     b. Book Value
     c. Appraised Value

9. Our audit findings report to Church Management will be specific. Our comments and recommendations will be structured as follows:
     -     What should be and why
     -     What we found
     -     Our recommendation

10. Identify deficiencies in Church operations. Recommend theft prevention procedures .