Scribd Logo
Upload

Welcome to Scribd!

  • 37 views

    Exam Latest Circular by Icap: Not-For-Profit Organizations (Nfpo)

    Uploaded by

    Piyal Hossain
    The circular summarizes notes on auditing not-for-profit organizations (NFPOs) for an exam, despite it not being listed in the learning objectives. NFPOs aim to provide services to society rather than make profits. Their different objectives influence the audit approach. The summary outlines the audit planning process, assessing risks like inherent, control, and detection risk. It discusses examining internal controls over areas like cash, income sources, and spending. Audit evidence in small NFPOs prefers a substantive approach, focusing on transaction completeness and misuse of funds. Reporting requirements depend on laws or agreed voluntary audit objectives. Cash is a significant audit area, as is assessing income sources and ensuring funds are only used for intended purposes.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Exam Latest Circular by Icap: Not-For-Profit Organizations (Nfpo)

    Uploaded by

    Piyal Hossain
    37 views2 pages
    The circular summarizes notes on auditing not-for-profit organizations (NFPOs) for an exam, despite it not being listed in the learning objectives. NFPOs aim to provide services to society rather than make profits. Their different objectives influence the audit approach. The summary outlines the audit planning process, assessing risks like inherent, control, and detection risk. It discusses examining internal controls over areas like cash, income sources, and spending. Audit evidence in small NFPOs prefers a substantive approach, focusing on transaction completeness and misuse of funds. Reporting requirements depend on laws or agreed voluntary audit objectives. Cash is a significant audit area, as is assessing income sources and ensuring funds are only used for intended purposes.

    Original Description:

    audit

    Original Title

    Audit & Assurance

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The circular summarizes notes on auditing not-for-profit organizations (NFPOs) for an exam, despite it not being listed in the learning objectives. NFPOs aim to provide services to society rather than make profits. Their different objectives influence the audit approach. The summary outlines the audit planning process, assessing risks like inherent, control, and detection risk. It discusses examining internal controls over areas like cash, income sources, and spending. Audit evidence in small NFPOs prefers a substantive approach, focusing on transaction completeness and misuse of funds. Reporting requirements depend on laws or agreed voluntary audit objectives. Cash is a significant audit area, as is assessing income sources and ensuring funds are only used for intended purposes.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    37 views2 pages

    Exam Latest Circular by Icap: Not-For-Profit Organizations (Nfpo)

    Uploaded by

    Piyal Hossain
    The circular summarizes notes on auditing not-for-profit organizations (NFPOs) for an exam, despite it not being listed in the learning objectives. NFPOs aim to provide services to society rather than make profits. Their different objectives influence the audit approach. The summary outlines the audit planning process, assessing risks like inherent, control, and detection risk. It discusses examining internal controls over areas like cash, income sources, and spending. Audit evidence in small NFPOs prefers a substantive approach, focusing on transaction completeness and misuse of funds. Reporting requirements depend on laws or agreed voluntary audit objectives. Cash is a significant audit area, as is assessing income sources and ensuring funds are only used for intended purposes.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 2

    EXAM LATEST CIRCULAR BY ICAP

    A circular by ICAP dated February 25, 2015 says that Audit of Not for Profit Organization is examinable
    although it is not there in the LOs. Therefore to be on the safe side just go through the following
    summarized notes so that you can manage any question coming from this topic. Please inform others too!!

    NOT-FOR-PROFIT ORGANIZATIONS (NFPO)


    In commercial organizations the objective is to make profit for shareholders but in case of NFPOs the
    objective is very different. It is usually the provision of a service to a society as a whole or to a group in
    society. Examples are charities, clubs & societies and publicly owned organizations. The difference in the
    objectives will influence the approach to audit.

    THE AUDIT APPROACH

    Planning
    1.
    2.
    3.
    4.
    5.

    Objectives & scope of audit


    Local regulations that apply
    Environment in which the organization operates
    Form & Content of the FS
    Key audit areas including risk

    Risk
    1.
    2.
    3.
    4.

    Audit Risk Analysis (IR,CR,DR)


    Inherent Risk- Reflecting the nature of entitys activities
    Control Risk- Controls over cash collection & payments
    Detection Risk- Auditor specific risk

    Internal Control
    1.
    2.
    3.
    4.
    5.

    Segregation of Duties
    Authorization of spending
    Cash controls
    Controls over income (Donations, collection, membership fee, grants)
    Use of funds only for authorized purposes

    Audit Evidence
    1. Substantive approach preferred in small NFPOs
    2. Focus on completeness of transactions & possibility of misuse of funds
    Reporting
    1. Whether report is required by law
    2. In case of voluntary audit the report should reflect the agreed objective of audit
    WWW.GCAOFFICIAL.ORG

    Other Factors
    1.
    2.
    3.
    4.

    Cash is a significant area


    Higher ROMM in income particularly in case of donations and money raised informally
    Certain finds to be used for specific purposes only
    Proportion of revenue used in administrations

    COURTESY:

    WWW.GCAOFFICIAL.ORG

    Sir Fahad Ahmed Hashmi

    You might also like