Our treasurer prepares a monthly income statement and balance sheet. Is this considered enough review to meet the annual audit requirement?

No. That does not meet the requirement for an annual audit as financial reporting provides no assurance on the validity, completeness or accuracy of the data. On the other hand, having an evaluation or audit provides some level of assurance that, based on the testing of the underlying data and internal controls, the reports are presented fairly (not necessarily 100% accurate) and are free of material misstatement (whether error or fraud). Please refer to the Local Church Audit Guide for more guidance and information on why an audit is necessary.