Hiring an outside professional auditing firm is not required. Though it is recommended for churches with annual receipts in excess of $300,000 – $400,000.
The person(s) performing the audit should have two characteristics.
- They must be independent, meaning they must not be subject to control or influence by anyone who has responsibility for the financial accounts and records of the church. There should not even be an appearance of a relationship.
- They must be qualified, meaning they must have some experience with accounting principles, have time to devote to the audit, and the initiative to follow through.
For more information about what the audit is, who can do it, and how it should be done, please refer to the Local Church Audit Guide.