A smooth annual audit is a hallmark of a well-run association. However, it is not a given that an audit will go well. High-performing associations actively coordinate the efforts of three key groups—the executive management team, the finance team, and governance. Here are 19 ways the three groups can ensure audit success.

Finance Team

1. Treat each month-end close like a mini-audit. The finance team closes the books on a monthly basis—each close should be a low-stakes rehearsal for the real thing.
2. Embrace technology and automate where possible. Manual processes are more prone to error and override of control. Seeking automation reduces risk and increases efficiency.
3. Stay approachable and maintain open lines of communication with the other departments. The finance team should be a resource, not a silo. Strong cross-departmental relationships facilitate the audit process.
4. Proactively adapt internal controls. When operational or system changes occur, internal control processes should be updated in response—don’t wait for auditors to flag gaps.
5. Build a strong working relationship your audit firm. Unusual and significant transactions should be discussed with the auditors as they happen to ensure alignment on accounting treatment before year-end.
6. Coordinate the audit timeline—and be ready. The finance team should work with auditors to set agreed-upon dates and ensure all materials are prepared well in advance.
7. Invest in ongoing professional development. Regular training on developments in accounting, tax, and compliance keeps the team sharp and current.
8. Present audit results to governance clearly and effectively. Work with auditors to prepare succinct, accessible presentations so board members can fully understand the findings.

Executive Management Team

1. Recognize that the whole organization is being audited—not just finance. Executive leaders should communicate to all staff the importance of being responsive to audit requests.
2. Provide timely and accurate data throughout the year. The finance team can only work with what it receives. Delays or inaccuracies from other departments create downstream problems at audit time.
3. Take ownership of budget responsibilities. Executive team members should review monthly financial statements promptly and provide timely feedback—don’t leave it all to finance.
4. Integrate risk management training into every department. Risk awareness shouldn’t live only with the finance team. Executive leaders should ensure it is integrated into each department.
5. Stay informed about the audit timeline and follow through on findings. The executive leadership team should be aware of when the audit is happening, receive the results, and actively help resolve any findings.

Governance

1. Know the audit timeline and take interest in the outcome. Board members should be engaged, not passive. Awareness of the audit schedule signals to staff that leadership takes the process seriously.
2. Set the tone from the top. Governance should make clear that it expects the entire management team to treat the audit process with the attention it deserves.
3. Leverage an audit or finance committee for oversight. A dedicated committee can provide oversight and serve as an internal champion for the audit process.
4. Make financial literacy training part of onboarding—and conduct on an ongoing basis. Governance can’t effectively oversee what it doesn’t understand. Regular financial education is an investment in better oversight.
5. Require timely follow-up on audit findings. Governance should hold management accountable for addressing any findings promptly—don’t let them linger from one audit cycle to the next.
6. Recognize and celebrate a successful audit. When the audit goes smoothly, governance should acknowledge the hard work of the executive management and finance teams. Recognition reinforces a culture of diligence.

Communication, engagement, and discipline are the foundations of audit preparation. By ensuring that the finance team, executive management team, and governance are working in tandem, association leaders can approach the annual audit with confidence.