What it is
A church audit is a nonprofit audit with unusual cash controls. Offerings are collected in person, counted by volunteers and deposited, so completeness of cash receipts is the first risk. After that come restrictions on gifts, funds the congregation or board designates, and payroll rules for clergy.
The program covers offerings and tithes cash handling, donor restrictions and designated funds, benevolence and agency funds, clergy housing allowance and payroll, functional expenses, building debt and covenants, schools and other operations, and related parties. Steps carry an assertion, sample-size note, W/P reference and sign-off.
When to use it
- Planning the audit of a church, synagogue, mosque, temple or other religious organization.
- When the congregation has a building loan, a school or daycare, or restricted building campaign gifts.
- To document how you test offering cash and restricted funds.
What’s inside
- Contributions and offering cash: counting controls, deposits and records
- Restrictions, designated funds, agency funds and benevolence
- Expenses, payroll, clergy compensation and debt
- Tie-outs and general procedures
Standard cited
This template follows AU-C 330 / ASC 958. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use. See AU-C 330 explained.
Questions
How do you test completeness of offering cash?
Observe a count, confirm two unrelated people count and sign, agree count sheets to deposits and deposits to the ledger, and compare weekly offerings to individual giving statements and prior trends. Cash that is never counted cannot be tested, so the control evaluation matters.
What is the difference between a designated and a restricted fund?
A donor or law imposes a restriction. A board or congregation vote creates a designation, which can generally be reversed. Net assets are reported by donor restriction, so a designation stays without donor restrictions (ASC 958-205).
How is a housing allowance handled?
Clergy compensation can include a housing allowance excluded from income tax but not from self-employment tax. Test that the allowance was designated in advance by the governing body and that payroll reporting matches. Tax treatment questions belong to the tax adviser.
Related templates
- Audit Program: Nonprofit Organization
- Audit Program: Cash and Bank
- Audit Program: Debt and Equity
- Related Party Questionnaire for Management (AU-C 550 / ASC 850)
Last updated 11/05/2026. All free templates.