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An auditing committee is optional if you have a finance committee, but it may help your organization keep up to date with internal and external audit requirements. You can also share audited financial reports on websites like Charity Navigator, where many foundations search for organizations to fund. In this article, we\u2019ll discuss different types of audits, the benefits to your nonprofit, and the steps you\u2019ll need to take. In a compilation, the CPA assembles financial data without verification and presents it in the form of a report based on management’s representations. This doesn\u2019t assure the accuracy of the financial statements but can still offer transparency to stakeholders. If your nonprofit organization needs additional funding and you choose to apply for a loan, more often than not, a bank will require an audit of your loan application, and throughout the life of the loan.<\/p>\n<\/p>\n