Preparing for the Audit Cycle

Overview

There are two audit cycles each year. This article describes the preparation that should precede each audit cycle.

Stake President’s Responsibilities

If the stake president has not organized a stake audit committee, he does so before the next audit cycle begins. One of his counselors serves as chairman. Two other trustworthy stake members who understand or can be trained in financial matters are called as audit committee members. These brothers or sisters should have current temple recommends. Audit committee members should not be stake auditors or perform stake or ward financial record keeping.

Stake Audit Committee’s Responsibilities

The stake audit committee ensures that stake auditors are called and trained. The committee chairman recommends two or more trustworthy brothers or sisters in the stake who hold current temple recommends to serve as stake auditors. If possible, stake auditors should have some experience as former clerks or in accounting or auditing. Stake clerks and assistant stake clerks should not be called as stake auditors. Ideally these auditors should serve through several audit cycles. The stake presidency and high council approve stake auditors. Stake auditors are called by the stake president or an assigned counselor. Stake auditors are not sustained, and the stake president determines whether they should be set apart.

Before an audit cycle begins, the stake audit committee meets to:

• Review the current audit forms or the online practice audits to become familiar with the audit questions.
• Evaluate the results of previous audits, including repeated audit exceptions, to determine which past financial risks should be addressed as part of training and during the current audit.
• Discuss new and existing financial risks in the stake. These risks may affect how audits are performed or who performs them.
• Assign a stake auditor to audit specific units and provide them with necessary guidance, resources, and training to conduct each audit effectively.

For additional information, please download and study the Stake Audit Committee document. This document describes the purpose, organization, duties, and accountability of the stake audit committee. Click here to download the PDF file.