Accounting and Auditing

• Nonprofit accounting is the unique process by which nonprofits plan, record, and report upon their finances. While for-profits primarily focus on earning a profit, nonprofits follow a specific set of rules and procedures that help them stay accountable to their donors and contributors.
• Audits are the examination of the financial statements by an accounting professional to determine whether they conform to accounting standards. An "independent audit" is performed by a public accounting firm or an individual who is a certified public accountant ("CPA") who provides an independent opinion on whether or not the nonprofit's financial statements/records comply with accounting standards known as "GAAP" (generally accepted accounting principles.)