Evaluation of Independent Auditors

Name*

First Last

Email*

1. Does the audit committee have the appropriate number of members?*

Yes	No	Not Sure

Comments

2. Did the auditors address issues of “tone at the top” and antifraud programs and controls in place in the organization?*

Yes	No	Not Sure

Comments

3. Did the auditors inform the audit committee of any risks of which the committee was not previously aware?*

Yes	No	Not Sure

Comments

4. Did the auditors adequately discuss issues of the quality of financial reporting, including the applicability of new and significant accounting principles?*

Yes	No	Not Sure

Comments

5. Did the auditors communicate issues freely with the audit committee, or did they seem protective of management?*

Yes	No	Not Sure

Comments

6. Does it appear that management exercises undue influence on the independent auditors?*

Yes	No	Not Sure

Comments

7. Does it appear that the independent auditors are reluctant or hesitant to raise issues that would reflect negatively on management?*

Yes	No	Not Sure

Comments

8. Is the audit committee satisfied with the planning and conduct of the audit, including the financial statements and internal control over financial reporting (as applicable)?*

Yes	No	Not Sure

Comments

9. Is the audit committee satisfied that the independent auditors remain independent and objective both in fact and appearance?*

Review all audit-related and nonaudit services conducted by the independent auditors in the prior year.
Review whether the firm, the office or the partner is dependent on the organization for a material percentage of its fee income.
Review whether former members of the audit team are now employed by the organization.

If any of these conditions exist, the audit committee should consider whether they impair the independence with respect to the organization.

Yes	No	Not Sure

Comments

10. a. How is the concurring partner (if applicable) compensated?*

Yes	No	Not Sure

Comments

10. b. Is the concurring partner “protected” in the event a tough call needs to be made?*

Yes	No	Not Sure

Comments

11. Is the audit committee satisfied with its relationship with the auditors?*

In making this determination, the audit committee should consider (a) whether the partner-in-charge of the audit participated in audit committee meetings, (b) whether the auditors were frank and complete in the required discussions with the audit committee, (c) whether the auditors were frank and complete during executive sessions with the audit committee, (d) whether the auditors are on-time in their delivery of services to the organization.

Yes	No	Not Sure

Comments

12. Was the audit fee fair and reasonable in relation to what the audit committee knows about fees charged to other nonprofit organizations, and in line with fee benchmarking data the audit committee might have available to it?*

Yes	No	Not Sure

Comments

13. Did the independent auditors provide constructive observations, implications, and recommendations in areas needing improvement, particularly with respect to the organization’s internal control system over financial reporting?*

Yes	No	Not Sure

Comments

14. Did the independent auditors demonstrate an ongoing understanding of the uniqueness of nonprofit organizations, especially those operating in the sector of this organization?*

Yes	No	Not Sure

Comments

Evaluation of Independent Auditors

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