Certified Public Accountant or CPA is a professional
license that permits the holder to practice
accountancy.  It is awarded after passing a series of
exams. 

In the US, individuals generally take these exams
around the time they complete a bachelor's degree,
often one in Business Administration, Finance or
Accounting.  This is one of those occupational groups
where a professional association (as opposed to a
state) confers the professional license.   

Bookkeepers are not accountants.  Bookkeeping has
traditionally been a clerical position, responsible
for debiting and crediting the correct accounts in the
employer's financial records (aka books).  This person
may or may not write checks.  At its most basic,
bookkeeping is divided into accounts payable and
accounts receivable.  In larger organizations, 
bookkeepers are generally supervised by accountants
whose job is to set up and keep track of the financial
system, making sure it complies with GAAP's "generally
accepted accounting practices."

The person who keeps your books cannot also do the 
audit, unless he/she has the education and training to
do an internal audit, often in preparation for the
financial audit. A financial audit requires that
external eyes go over all financial transactions and
records very carefully in order to identify
irregularities or signs that there could be future
problems.  At the end of the process they sign a
legally binding document that attests to the financial
health (or lack thereof) of the organization.  

I do not know what sort of review the original poster
suggested was being considered but I doubt that the
review would substitute for an audit in the eyes of
most state agencies, Federal agencies, private
foundations, donors or lenders who require audits.   

In response to a groundswell of requests here in
Wisconsin, the Better Business Bureau has been
attempting to keep track of non-profit organizations
as a way to minimize the scams and less-than-savory
practices some engage in.  BBB now requests copies of
financial audits as part of their system.  They are a
good source for individuals and funding agencies to
check to determine whether a request for a
contribution is coming from a valid source or not. 

While discontinuing an audit may seem like a good way
to save much needed funds, it will put Board members
and staff at risk, especially if errors creep into the
financial system and anything goes missing.  I liken
an annual audit to an annual check-up by your
physician.  Maybe you can skip it but is it really a
good idea to do so?

Judith Turner
Whitefish Bay, WI 
(who has lots of years of observing and interacting
with a wide variety of financial systems in
governmental agencies and in private non-profits)   



       
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