The audit function may be one of the most crucial aspects of monitoring a school district's financial condition. It is the Jericho Board of Education's responsibility to maintain the fiscal health of the district and to ensure that all legal mandates relating to the financial transactions of the District are adhered to. There are two types of auditors that board of Education members encounter in a school district setting: "internal" and "external" auditors.

External auditors are certified or licensed individuals from independent firms that contract with a school district to perform the annual financial statement audit. The work performed by the external auditor is guided by established professional standards and legal mandates. The external auditors provide the school district with the year-end financial statements. The external auditors may also be consulted to discuss issues such as alternative accounting treatments of specific accounting transactions and new legislative mandates. The board of education has appointed Pappas & Company as the external independent auditors of the Jericho Union Free School District. At the September board of education meeting the independent auditors, Pappas & Company, presented a report to the board of education and to the general public. The district received the highest level of approval on its audit for 2005 and the auditors provided an "unqualified opinion".

An internal auditor reports directly to the board of education, but is totally independent of the business office function and the external audit function. The internal auditor focuses on transactions as they occur throughout the school year and an evaluation of the internal controls within the business function of the school district. In January 2005 the Jericho Board of Education appointed Callaghan Nawrocki to be the internal auditors of the Jericho Union Free School District. The internal auditor assumes the powers and duties of the board of education in regard to approving all claims against the district. An internal auditor's duties are not limited only to expenditure items, but also include a review and evaluation of many aspects of the district's finances including payroll, benefits, cash receipts and cash disbursements throughout the year. At the September board of education meeting the internal auditors, Callaghan Nawrocki, presented a report to the board of education and to the general public. The internal auditors acknowledged the many strengths of the business office staff and reported to the board of education that they found no weaknesses.