What it is
Churches follow nonprofit accounting under ASC 958, but a church audit has its own habits: cash gifts counted in services, designated offerings, pass-through gifts for missions, and compensation arrangements for clergy. The checklist tests offering completeness and the restriction status of each fund.
Tax-law points, such as housing allowances and clergy payroll tax status, are marked for confirmation by a licensed CPA or tax adviser, because they depend on facts and rules outside the audit itself.
When to use it
- Planning an audit or review for a church, synagogue, mosque or other house of worship.
- When the church operates a school, daycare or cemetery.
- To document offering controls and fund restrictions.
What’s inside
- Governance, related entities and independence considerations
- Offering count controls and completeness analytics
- Designated, restricted and pass-through gifts
- Clergy compensation, housing allowance and payroll tax checks
- Presentation: net assets, functional expenses, liquidity and Form 990 status inquiry
Standard cited
This template follows ASC 958 / AU-C 330. 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
Is a designated offering a restricted gift?
Only if the donor attached a purpose or time condition. A board decision to use funds for a purpose is a designation and remains without donor restrictions.
How should gifts passed on to another organization be treated?
If the church holds the funds as an agent for a donor-directed recipient, they are generally a liability rather than revenue (ASC 958-605). Read the facts of each gift.
Does a church file Form 990?
Churches are generally exempt from the annual filing, but related organizations may not be. Ask a licensed CPA or tax adviser to confirm for the specific entity.
Related templates
- Nonprofit Organization Audit Checklist (ASC 958)
- Payroll Audit Checklist
- Fraud Inquiry and Brainstorming Documentation (AU-C 240)
Last updated 11/05/2026. All free templates.