1) The document discusses the responsibilities of CPAs in conducting quality audits for clients and organizations, as they are responsible to both clients and the public interest. 2) It notes issues that can undermine the quality of audits such as underbidding for business and issues with the perception of the accounting profession. 3) Recommendations are provided for ensuring quality audits, which include CPA education, ethics, quality review programs, and educating audit users on what to expect from an audit.

1. Quality Matters: Getting the Most from an Audit Presented by: David J. Moynihan, CPA President New York State Society of Certified Public Accountants Community Focus | Statewide Impact | National Network

2. Quality Matters CPA answers to the public, not only to clients. CPAs have ethical responsibility to see that audit is done right. As nonprofit executives, you answer to both your organization and taxpayers. Responsibilities

3. Quality Matters CPAs and clients work together to improve communications. CPA is trusted advisor, but CPA is also independent. CPAs tell the truth and the real story. CPA has a responsibility to the organization being audited, to its stakeholders and taxpayers. CPA is protector of the public interest. Your CPA is an advisor, not an advocate

4. Quality Matters Portrayal of CPAs in mass media at best colorless, at worst villainous. Scandals – Enron, Madoff, Roslyn School District. Certified Fraud Examiners report U.S. organizations lose $994 billion a year to fraud. Perception of the profession

5. Quality Matters Underbidding to gain business is negative to the profession. Low-balling often used as a bridge to more lucrative engagements. The low-balling problem

6. Quality Matters Three legged stool – education, ethics, quality review: 1) Education. 2) Ethics and enforcement. 3) Quality review. What needs to change?

7. Quality Matters CPAs maintain high standards by adhering to strong auditing standards, quality review and continuing professional education. This is all part of a newly enacted state law. The New York State Society of CPAs is working to educate CPAs about this law that raises the bar of CPA accountability in NY State and holds every CPA to the same high standards. Regulation

8. Quality Matters Before an audit begins, CPAs need to educate the end user on expectations and quality. Audit is part of the overall system of checks and balances outside of internal controls. Any abnormal findings reported by the auditor should trigger an investigation on the part of the company or nonprofit. An audit, when done correctly, is extremely beneficial to the nonprofit. The CPA should educate you on how to organize and prepare. Educating users

9. Quality Matters Determine your needs before looking for a CPA. Network with business associates and friends about CPAs they use. CPAs offer a free initial consultation. Conduct your own interview process. Be prepared with up-to-date financial records including your most recent federal tax return, all schedules and forms, a copy of your general ledger and current financial statement as well as bank statements. Best practices for nonprofit management

10. Quality Matters Look for a CPA who expresses an interest in your business and who understands the financial intricacies of your specific industry. Ask the CPA for references and call them. Ask if the CPA delivers work on time and on budget. You have a shared responsibility with a CPA in getting your organization’s financial statements audited. Finding the right fit