Farahat & Co - One of the top Audit Firms in Dubai, UAE - PowerPoint PPT Presentation

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Farahat & Co - One of the top Audit Firms in Dubai, UAE

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We’ve prepared a non-profit organization audit checklist in this post that you can use to guarantee that the procedure is carried out appropriately. When performing an audit of a non-profit organization, the following points should be kept in mind. – PowerPoint PPT presentation

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Title: Farahat & Co - One of the top Audit Firms in Dubai, UAE


1
Farahat Co
  • The Leading Audit Firm In Dubai
  • Contact971 4 2500251 
  • Mail us sales_at_farahatco.com

2
Checklist for Auditing Non-Profit Organizations
  • An annual audit is one of the essential
    obligations of profit organizations. They are
    required to demonstrate to the authorities their
    operational transparency and pay the appropriate
    amount of tax. Non-profit organizations, on the
    other hand, have an advantage in this situation
    because they are eligible for a variety of tax
    deductions. The primary reason for this is that
    they are not interested in pocket earnings but
    rather in utilizing them to benefit
    underprivileged segments of society.
  • Aside from this, non-profit organizations are
    required to undertake an annual audit of their
    financial records. This is because donors provide
    them with far more financial support than they
    need to carry out their purpose. They have the
    same right as everyone else to inquire and
    investigate whether or not their finances and
    assistance are being used honestly. As a result,
    an audit can also draw attention to the
    transparency of organizations, which is
    incredibly significant.
  • Because of taxes considerations, the audit of a
    non-profit organization differs from a
    profit-based organization in some ways. As a
    result, if you are in charge of or manage a
    non-profit organization, you must pay close
    attention to the minor details to ensure a smooth
    audit procedure. To reach this purpose, it is
    simple to follow a checklist of audit procedures.
  • Weve prepared a non-profit organization audit
    checklist in this post that you can use to
    guarantee that the procedure is carried out
    appropriately. When performing an audit of a
    non-profit organization, the following points
    should be kept in mind.

3
Examine Accounting Practices 
  • Every organizations accounting practices are its
    backbone, and analyzing these practices is the
    cornerstone of the auditing process. This is the
    first stage that organizations must pass through
    to ensure that all accounting processes are
    ethical and in compliance with the law. Because
    internally nominated leaders can also commit
    fraud, most organizations rely on and engage
    the best audit firms in Dubai to oversee the
    process and leave the details to the
    professionals.

4
Financial Reports Evaluation
  • Following a review of the non-profit
    organizations accounting practices, the next
    step in ensuring a smooth audit procedure is
    evaluating the organizations financial reports.
    It is critical to thoroughly review the financial
    reports to ensure that there are no financial
    errors. In addition, the organizations status is
    being communicated equitably to donors,
    stakeholders, and employees to maintain a
    transparent and dependable organization.

5
Analyze Contribution Management
  • Non-profit organizations hold a tremendous
    responsibility and face enormous pressure to
    ensure that donors contributions are used
    ethically and transparently. Consequently, the
    next step in conducting a successful audit of a
    non-profit organization is to examine the way
    donations are managed. The auditors will need to
    pay close attention to the income funds and
    utilized funds and the methods and procedures for
    utilizing these accounts.

6
Internal Controls Must Be Tested
  • When conducting a non-profit audit, one of the
    essential checkpoints to look for is whether the
    organizations internal controls are up to par.
    It is vital to analyze the openness and fairness
    of an organizations activities by ensuring that
    the controls have been established and adhered
    to. In addition, the audit report can identify
    the strengths and weaknesses of internal control,
    which can help improve the situation in the
    future.

7
Risks Evaluation
  • When performing an audit of a non-profit
    organization, it is also essential to consider
    the risks that can arise. Some of these risks
    might be connected with donors and stakeholders
    and organizational leadership, internal
    processes, and policy. Audit needs to ensure that
    the organization is properly set up while also
    evaluating and controlling risks.

8
Analyze Cash Flow Projections
  • In addition to analyzing the cash flow estimates,
    it is also vital to check the financial
    statements. It can entail determining the amount
    of money that comes in and goes out of the
    organization and the methods by which this money
    comes in and goes out. One of the essential roles
    of auditors is to ensure that there is no
    suspicious behavior in the companys cash flow.

9
Review Policies and Procedures
  • The organizations policies and processes review
    are among the most important checkpoints in the
    non-profit audit process, and they should not be
    overlooked. Some dishonest organizations
    incorporate too intricate conditions in their
    insurance plans that allow them to pocket
    additional funds and use them for their purposes,
    such as committing fraud. As a result, it is
    unavoidable to check for such policies and hold
    the relevant authorities accountable.

10
Results and Reporting Management
  • The final checkpoint you should accomplish to
    conduct a successful audit is managing the
    results and producing reports. Getting the
    results is not enough in and of itself. You
    require a report that highlights the companys
    strengths, flaws, challenges, and areas for
    improvement, which professionals can only
    complete. As a result, hire specialists and
    manage the audit report and findings to improve
    the management of your organization.

11
Trust A Professional to Audit Your Non-profit
Organization
  • If you are in charge of a non-profit
    organization, you are responsible for properly
    managing the funds and providing equitable
    support to worthy areas. Receiving an audit will
    not only improve the overall quality of your
    operations but will also increase your
    credibility with donors, sponsors, and even
    investors. Now is the time to use the services
    of experienced auditors to ensure the
    transparency of your operations and expand the
    scope of your welfare efforts.
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