GENERAL AUDITING CONSIDERATIONS FOR NON-FOR-PROFIT ENTITIES
GENERAL AUDITING CONSIDERATIONS FOR NON-FOR-PROFIT ENTITIES | Jeffrey B. Travis CPA
The AICPA has published its audit and accounting guide for audits of non-for-profit entities.
This guide references the Clarified Auditing Standards:
1) Overview of the auditing standards
2) Compliance auditing under Government Auditing Standards
3) Risk Assessment Procedures, including NFP specific characteristics
4) Planning Materiality
5) Performance Materiality
6) Communications with those charged with governance
7) Completing the audit
8) Related Party Transactions
9) Compliance with Laws and Regulations
10) Going concern considerations
11) Fraud considerations
Non-for-profit entities are presumed to be supported by the general public if contributions are 20% to 30% or more of the total revenue and support include cash and “in kind” (e.g. free services or goods).