Big Nonprofit Ideas for the Other 95%
[EPISODE] Hiring Your Audit Firm & Equitable Compensation
Hiring Your Audit Firm
When it’s time to change your auditors, what do you look for? And how best to work together? I talk through the relationship with Yigit Uctum, a partner at Wegner CPAs.
Is your compensation schedule fair? What does that mean and why should you care? Gene Takagi returns for a full discussion. He’s our legal contributor and principal of NEO, the Nonprofit & Exempt Organizations Law Group.
The show begins with Tony introducing the first guest Yigit Uctum, who begins with what exactly audit firms do in particular, mainly focusing on monitoring, advising and analysis, as well as addressing a few misconceptions. Yigit briefly addresses how long the audit process is as well as discussing the differences between digital and in-person auditing. The two then get into what exactly companies should look for in hiring an audit firm, highlighting expertise and experience.
The segment begins with Yigit discussing the frequencies of RFPs, how they are developed and the viability of online templates, encouraging people to know what they want out of these audit relationships and why he thinks most people are looking into changing firms, focusing on rising fees and audit errors, going into how these errors come about and how they are discovered. He speaks on the importance of engagement on both ends of RFPs. The segment concludes with Yigit giving advice for how people should get these new relationships off the ground.
Tony introduces the second guest, Gene Takagi, speaking his mind about the controversies of equitable compensation and the legal actions now being taken against these pay imbalances. Gene goes into his view of these laws as a California lawyer himself where these legislations are first implemented before they spread across the country. The two discuss the cultural assumptions where education is often selected over professional experience when hiring, and how productivity and output are put ahead of people’s relationships and feelings towards an organization.
The final segment begins with Gene’s take on more cultural assumptions, speaking on how employers believe they’re giving people benefits but ignore the financial issues of the employees who cannot even contribute to a 401K. Gene recommends a pay audit for every organization to be reviewed and being able to choose the right factors to justify an employee’s pay, giving his take what is the best format to discuss equity considerations within an organization. The show ends with Gene discussing the role of a board and their responsibility towards the organization and his tips on creating a fair equity-based compensation system in a company.