What is a nonprofit audit RFP?

A request for proposal (RFP) for audit services is a document a nonprofit sends to several CPA firms describing the organization, the audit it needs and how proposals will be evaluated. Sending the same RFP to each firm makes proposals comparable for the board or audit committee.

Is a nonprofit required to issue an RFP for its audit?

Not always. Some funders, government contracts and board policies require competitive selection. Organizations that spend federal awards must follow the procurement standards in 2 CFR 200.317 through 200.327 when selecting their auditor, and 2 CFR 200.509 lists factors to weigh, including experience, staff qualifications, peer review results and price.

When should we send out an audit RFP?

Give firms time to plan before your fiscal year ends. Many organizations send RFPs several months before year end so the new auditor can schedule planning and interim work. If your fiscal year ends June 30, that often means late winter or early spring.

How often should a nonprofit re-bid its audit?

There is no federal rule requiring nonprofits to rotate audit firms. Many boards choose to review or re-bid the audit every few years, often at the end of a multi-year engagement, while others rotate the engagement partner instead of the firm.

What should we ask audit firms to include in their proposals?

Their licensing and independence, the most recent peer review report, the engagement team and its nonprofit and Single Audit experience, the audit approach and communication plan, references from similar organizations and an all-inclusive fee for each year.

Can we use this template if we need a Single Audit?

Yes. The template includes a Single Audit and Government Auditing Standards section covering the required reports, the Schedule of Expenditures of Federal Awards and the Federal Audit Clearinghouse submission. Delete that section if you spend less than $1,000,000 in federal awards.

Nonprofit audit RFP template

A free Word template for requesting proposals from audit firms. It covers your organization's background, the audit scope including an optional Single Audit section, the timeline, what firms must include, weighted evaluation criteria, a scoring sheet and finalist interview questions. No sign-up needed.

Download the template (.docx)Send us your RFP

What goes in a nonprofit audit RFP?

A nonprofit audit RFP describes the organization (revenue, funding sources, federal awards, accounting system and prior auditor), the audit scope (financial statement audit, plus a Single Audit if federal expenditures are $1,000,000 or more), the timeline, what each proposal must include such as the firm's peer review report and team experience, and how proposals will be scored.

What's in the template

Section 1

Introduction

Who you are, the fiscal years covered, whether renewal years are optional, and how firms should ask questions.

Section 2

Background on your organization

Revenue, funding sources, federal awards, funds and grants, accounting system, finance staff, prior auditor and prior findings. Firms staff and price the audit from these facts.

Section 3

Scope of services

The financial statement audit, a Single Audit and Yellow Book section if you spend $1,000,000 or more in federal awards, plus optional Form 990 or agreed-upon procedures.

Section 4

Timeline

Dates for questions, proposals, interviews, selection, fieldwork, the draft and final report, and Federal Audit Clearinghouse submission.

Section 5

Proposal requirements

Licensing, independence, peer review report, team experience, audit approach, transition plan, references and a fee for each year.

Section 6

Evaluation criteria

Weighted criteria so every board member scores firms the same way. Price is one factor among several.

Section 7

Scoring sheet and interview questions

A ready-to-use scoring table for three firms and questions to ask finalists.

How to run an audit RFP

Agree on who decides. The board, finance committee or audit committee usually approves the auditor. Decide who reviews proposals and who interviews finalists.
Fill in the background section carefully. Revenue, number of grants and federal programs, and the condition of your records drive the work an audit requires. Accurate facts produce comparable proposals.
Send the same RFP to several firms. Include firms that audit organizations like yours. Allow time for written questions and share every answer with all firms.
Score proposals against the criteria. Use the scoring sheet so each reviewer weighs experience, team, approach, quality and fees the same way.
Interview finalists and check references. Ask who will do the work, how they communicate, and what their most recent peer review found.
Sign the engagement letter. If you are changing firms, authorize your prior auditor to speak with the new firm. See switching nonprofit auditors.

If you receive federal awards

Organizations that expend $1,000,000 or more in federal awards in a fiscal year beginning on or after October 1, 2024 need a Single Audit. When selecting the auditor, 2 CFR 200.509 directs the organization to follow the federal procurement standards and to consider the firm's responsiveness, relevant experience, staff qualifications, peer review results and price. The template's evaluation criteria reflect these factors. Learn more about Single Audits or check whether you need one with our Single Audit checker.

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