NEW! Not-for-Profit Auditing Made Easy

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Audits of not-for-profit organizations can be challenging.   Not-for-profits have their own specific accounting principles, giving rise to different audit issues. Many small to midsize not-for-profits lack sophisticated accounting personnel, causing challenges in the auditor’s understanding of internal controls and assessment of risk.  In addition, the integration of a financial statement audit with the requirements of Government Auditing Standards and OMB Circular A-133 adds another layer of complexity.

Designed For
Practitioners who audit not-for-profit organizations.

Objective

Participants will be able to:

• Plan and perform audits for small to mid size not-for-profits as efficiently as possible.

• Understand the design of internal controls and determine whether they have been implemented (including areas specifically identified by the not-for-profit audit guide).

• Perform risk assessments under the new risk assessment auditing standards.

• Integrate requirements of Government Auditing Standards and A-133 in the planning and conduct of the financial statement audit to gain efficiencies.

• Audit areas that specifically apply to not-for-profits.

• Understand the likely ramifications of SAS No. 112 on not-for-profits and draft reports with comments for not-for-profit organizations.

• Use tools and templates contained in the manual to enable their clients to do a better job of preparing internal control documentation, as well as financial statements and disclosures. 

Understanding and documenting the system of internal control over financial reporting… Defining the risk of material misstatement… How to create audit plans that are responsive to identified significant risks…   Coordinating SAS No. 99 and SAS No. 109 procedures…  Holding a risk assessment discussion with the audit team…  Performing specific risk assessment procedures…  Identifying significant risks…  Substantive tests for not-for-profit specific account balances and classes of transactions … SAS 112 requirements...  Tools and templates that will enable clients to do a better job of preparing internal control documentation, as well as financial statements and disclosures.

This course will not cover how to audit major programs.

Presentation Method:  Lecture and group discussion.

Level of Knowledge:  Intermediate

Prerequisites:  Basic audit course or experience

Recommended CPE Credit:  8 hours

Field of Study:  Auditing

Advance Preparation:  None

Availability Date:  6/1/2008

Author(s):   Margaret Thomas, CPA, MHA 

Qualifies for 24 hour Yellow Book requirement.  Determination as to the qualification of certain courses for the Yellow Book 24 hour requirement should be made on an auditor specific basis depending on that auditor’s Yellow Book clients.  Note that the determination of course qualification is a matter of an auditor’s professional judgment in consultation with appropriate individuals in the audit firm.

It is recommended that this course not be scheduled back to back with “Changing Your Audit Strategy for the Risk Assessment Standards,“ “Loscalzo’s Implementation Guide to the Risk Assessment Standards,” “Hands on Guide to Understanding and Testing Internal Control,” “Ins and Outs of Accounting and Financial Reporting Issues for Not-for-Profit Organizations” or the four hour module “Changing Your Firm’s Audit Approach – Understanding the Risk Assessment Standards.”