Organization of audits in non-governmental non-commercial organizations

The planning of audit engagements for non-governmental and non-profit organizations typically includes the steps:

• a) Establish Engagement with Client: The first step is to establish an engagement with the client by determining the legal, regulatory and other requirements associated with the audit of a non-governmental or non-profit organization. After this step, all necessary documentation related to the engagement should be detailed in a written agreement between the auditor and client.

b) Define Audit Objectives and Scope: The next step is to review client information and obtain an understanding about their business activities and functions. This includes performing walkthroughs of their comprehensive systems of internal control, which can help identify any potential audit risks that warrant attention. Furthermore, it is essential to assess any possible threats to independence and develop a list of audit objectives that covers the risk areas identified during this process.

• b) Define Audit Objectives and Scope: The next step is to review client information and obtain an understanding about their business activities and functions. This includes performing walkthroughs of their comprehensive systems of internal control, which can help identify any potential audit risks that warrant attention. Furthermore, it is essential to assess any possible threats to independence and develop a list of audit objectives that covers the risk areas identified during this process.

c) Develop an Audit Plan and Program: Based on these objectives, auditors must develop an audit plan which should be tailored based on industry-specific guidance or standards as applicable; such as Generally Accepted Accounting Principles or International Standards on Auditing (ISAs). This includes designing tests such as analytical procedures, reviews of underlying documents and management inquiries that aim to assess compliance with legal obligations – both statutory/regulatory and donor grant conditions -and generally accepted fiscal norms such as budgeting, financial statements preparation, internal control management and reporting requirements established within the organization

• c) Develop an Audit Plan and Program: Based on these objectives, auditors must develop an audit plan which should be tailored based on industry-specific guidance or standards as applicable; such as Generally Accepted Accounting Principles or International Standards on Auditing (ISAs). This includes designing tests such as analytical procedures, reviews of underlying documents and management inquiries that aim to assess compliance with legal obligations – both statutory/regulatory and donor grant conditions -and generally accepted fiscal norms such as budgeting, financial statements preparation, internal control management and reporting requirements established within the organization