Yearly is best but even every three years is enough to keep most people honest.
Yeah, I know honest people do not require audits, you would not insult them by suggesting they are not honest, how dare I, blah, blah, blah.
Heard it all. Nearly every time I suggest an audit in fact.
Are the people who run charities bad people who will steal money from the mouths of children? Some are. But most are just weak and a bit careless and then astonished at how easy it is to steal.
They use the company card because they don't have quite enough on their debit for something and they really do intend to pay it back but something else crops up and they are really working hard and no one appreciated all they do and before you know it you have a real mess.
Find the first couple of fiddles, make them pay it back and oddly enough they will not try again. At least as long as they know another audit looms.
So... audits.
For your church, your charity, your business and especially for your government.
Absolutely, and make sure you hire a different auditing firm every 3-5 years. It keeps everyone on their toes.
I worked in a couple of CPA firms, and performed more than a dozen audits. If you just follow the checklists, you'd catch 95% of most fraud. Any experienced auditor would discover the other 5% IMO.
First and foremost, confirming amounts at financial institutions is imperative. Bank statements can be fabricated using today's technology. A bank confirm serves as independent corroboration.