Audit of Not-for-profit Organisation (NPO)


 Audit of Not-For-Profit Organisation (NPO)This paper considers the practices applied in the auditing of NPOs and the improvements introduced in the standards and regulations. It also considers the implications of the audit and vulnerability of NPO to fraudulent activities.
NAME:
ADMIN:

 Table of Contents
INTRODUCTION……………………………………………………………………………….3
 TOC \o "1-3" \h \z \u  HYPERLINK \l "_Toc276412643"
Audit of Not-for-profit Organisation (NPO)  PAGEREF _Toc276412643 \h
3
 HYPERLINK \l "_Toc276412644"
Statistical Study - Increase in NPOs and Reasons behind Increase  PAGEREF _Toc276412644 \h
4
 HYPERLINK \l "_Toc276412645"
Statistical Study - Increase in fraudulent practices in NPOs  PAGEREF _Toc276412645 \h
5
 HYPERLINK \l "_Toc276412646"
Objectives of NPO Audit  PAGEREF _Toc276412646 \h
6
 HYPERLINK \l "_Toc276412647"
DEVELOPMENT  PAGEREF _Toc276412647 \h
7
 HYPERLINK \l "_Toc276412648"
Increase Scope and Diversity on Accounting & Auditing  PAGEREF _Toc276412648 \h
7
 HYPERLINK \l "_Toc276412649"
Revised Audit & Accounting Framework  PAGEREF _Toc276412649 \h
7
 HYPERLINK \l "_Toc276412650"
SOX Act 2002 – Whistle Blower Protection & Protection of documents  PAGEREF _Toc276412650 \h
8
Change in FASB Codification (ASC Section 958) HYPERLINK \l "_Toc276412651"
  PAGEREF _Toc276412651 \h
9
Revised OMB Circular 122 & 133 HYPERLINK \l "_Toc276412652"
 9
COSO Framework – Enterprise Risk Management  HYPERLINK \l "_Toc276412652"
 10
 HYPERLINK \l "_Toc276412653"
 Internal Code of Ethics  PAGEREF _Toc276412653 \h
9
 HYPERLINK \l "_Toc276412654"
Training Arms – ACAUS & ICAEW  PAGEREF _Toc276412654 \h
10
 HYPERLINK \l "_Toc276412655"
CASE STUDIES  PAGEREF _Toc276412655 \h
11
 HYPERLINK \l "_Toc276412656"
Case Study 1 - Red Cross Scandal  PAGEREF _Toc276412656 \h
11
 HYPERLINK \l "_Toc276412657"
Case Study 2 - The Salvation Army of Australia  PAGEREF _Toc276412657 \h
134
 HYPERLINK \l "_Toc276412658"
Conclusion  PAGEREF _Toc276412658 \h
16
 HYPERLINK \l "_Toc276412659"
Future direction  PAGEREF _Toc276412659 \h
16
 HYPERLINK \l "_Toc276412660"
REFERENCES  PAGEREF _Toc276412660 \h
17
APPENDICES…………………………………………………………………………………..21

Introduction
Audit of Not-for-profit Organisation (NPO)
Not-for-Profit Organisations (NPOs) are charities or service organisations which do not run their operations on share capital, as they operate on funds and donations. Any surplus is not distributed to the organisation as dividend or any other incentives to its members. The purposes of settling up NPO is to support government in helping society by provision of education for poor children, supp...