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  • Writer's pictureBryMar Crew

Why it's Important for Your Nonprofit or Private Foundation to Hire an Auditor with a PASS Rating 


Is Your Auditor Rated As A PASS? Image

A peer review for auditors is a critical evaluation process conducted by an external team of auditing professionals to assess the quality and effectiveness of an audit firm's practices. The goal is to make sure the firm meets strict professional standards and delivers dependable financial reporting services. Here's why it's important for your nonprofit or private foundation to hire an auditor with a PASS rating: 


1. Quality Assurance: Peer reviews uphold audit quality by examining the auditor's adherence to standards set by regulatory bodies like the AICPA (American Institute of Certified Public Accountants) or state CPA societies. A PASS rating indicates that the auditor meets or exceeds these standards consistently. 

  

2. Reliability of Financial Statements: For nonprofit organizations and private foundations, accurate financial reporting is essential for maintaining transparency and accountability. An auditor with a PASS rating is more likely to produce reliable financial statements that your donors can trust. 

  

3. Compliance and Credibility: By hiring an auditor with a PASS rating, your organization demonstrates a commitment to compliance with auditing standards. This enhances your credibility with donors, grantors, and regulatory agencies, who value transparency and adherence to best practices. 

  

4. Risk Management: Engaging a reputable auditor reduces the risk of financial misstatements or errors going unnoticed. A thorough audit process helps identify potential areas of risk or internal control weaknesses that need attention. 

  

5. Stakeholder Confidence: Board members, executive directors, finance committee members, and donors rely on audited financial statements to make informed decisions about resource allocation and organizational strategy. A PASS-rated auditor instills confidence in these stakeholders. 

  

6. Continuous Improvement: Auditors who undergo regular peer reviews are more likely to be committed to continuous improvement and staying updated with evolving accounting standards and regulations. This benefits your organization by receiving up-to-date guidance and insights.  

When selecting your next auditor, we recommend prioritizing those with a recent PASS rating. This rating signifies a commitment to professionalism, quality, and integrity in auditing practices. It assures your organization that the audit process will be conducted competently and in accordance with established standards, providing you with accurate financial information essential for decision-making and accountability. 

  

To ensure your nonprofit or private foundation partners with an auditor of exceptional quality, consider BryMar CPA, which proudly maintains a PASS (Peer Review Accepted Without Exception) rating. This rating signifies BryMar's commitment to excellence and adherence to stringent auditing standards set by the AICPA. By choosing BryMar CPA, you can trust that your organization's financial reporting will be conducted with integrity and precision. Reach out to us if you have any questions. 


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