How much does a nonprofit audit cost?

Typical costs by size.

Revenue and expenses are the biggest drivers of audit cost, because they track how many transactions an auditor has to test. Headcount matters too: more employees means more payroll and internal controls to review.

Ranges span employee counts within each revenue band and assume clean books and a standard timeline.

What drives audit fees.

Audit fees are mostly a function of time: how long it takes to plan, test, and report. Anything that adds hours adds cost.

Single Audit and Yellow Book.

Single Audit (Uniform Guidance)

A Single Audit is generally required when a nonprofit expends $1,000,000 or more in federal awards in a fiscal year. On top of the financial statement audit, the auditor tests compliance and internal controls over your major federal programs. That added testing makes it more expensive than a standard audit.

Yellow Book (GAGAS)

A Yellow Book audit follows Government Auditing Standards. It's often required by government funders even when a full Single Audit isn't. It adds documentation and reporting on internal controls and compliance, which increases scope and cost.

First-time audits.

First audits usually cost more than repeat years. The auditor has to document your systems from scratch, verify opening balances, and walk through processes for the first time. Expect year two to be more efficient, especially if year-one recommendations are addressed.

Audit vs. review vs. compilation.

Not every organization needs a full audit. If no law, funder, or lender requires one, a lower level of assurance may be enough.

Check your state's charitable registration rules and your funding agreements before choosing. Some require a full audit above certain revenue thresholds.

When an audit is required.

• Federal funding: $1,000,000 or more in federal awards expended in a fiscal year generally triggers a Single Audit.
• State law: many states require audited financials above a revenue threshold for charitable registration. Thresholds vary by state.
• Funders and lenders: foundations, government grantors, and banks often require an audit as a condition of funding.
• Your board: many boards choose an annual audit for oversight, even when it isn't required.

How to reduce audit costs.

The cleaner your books are before fieldwork starts, the fewer hours the audit takes.

• Close the books on time and finish all bank and balance sheet reconciliations.
• Keep grant agreements, restricted fund schedules, and donor documentation organized.
• Prepare a schedule of federal award expenditures if you have federal funding.
• Address prior-year audit recommendations before the next audit begins.
• Schedule fieldwork outside busy season when your deadlines allow.
• Have one point person who can answer auditor questions quickly.