• It would take a considerable amount of time to examine each financial transaction in detail. The Trustees audit concentrates on reviewing key financial areas and is specifically designed to save time, and yet provide for meaningful systematic review of the local union’s financial books and records.
• The audit’s four primary objectives are:

1. To ensure that union funds and other assets are properly accounted for and are used solely for the benefit of the union or its members.
2. To confirm that the local is complying with legal requirements for financial reporting, record keeping, bonding, and loans.
3. To determine as to whether the internal controls are adequate or need improvement.
4. To ascertain whether the local union is complying with established financial practices and procedures.

• Ensuring that all of the money received by the local union has been deposited into the local’s bank account is a key component to a successful audit.
• Confirming that established disbursement practices are being followed is essential to ensuring that the local union’s funds are being handled responsibly on behalf of all the members.
• Assets include not only money in the bank accounts (liquid assets) but may also include various types of equipment (fixed assets). The value of these assets must be included and accounted for with accurate and reliable records.
• LMRDA compliance requires that unions file annual financial reports, maintain records that are sufficient to clarify or support information shown on these reports, secure adequate bonding to provide protection against losses due to fraudulent or dishonest actions, and restrict the amount of loans made to officers and employees.