Audits of nonprofit organizations are challenging. More and more even smaller organizations are entering into transactions that require more skill to audit, in part because many small- to mid-sized nonprofits lack sophisticated accounting personnel and do not bring them to the auditor’s attention. Smaller organizations frequently have lack of segregation of duties and present challenges in the auditor’s understanding of internal controls and assessment of risk. This course illustrates how to document the risk assessment procedures (including the understanding of internal control and the linkage between the risk assessment) and the audit programs for a very small volunteer fire department with less than $300,000 in revenue. It also includes updates on the current issues for 2017-2018, including a discussion of the new FASB literature on financial statement presentation and revenue recognition and the AICPA’s SAS No. 132 on the auditor’s consideration of an entity’s ability to remain a going concern.
Course ID: ENA
Essentials of Nonprofit Auditing
- Participants will be able to: ? Plan and perform audits for small- to mid-sized nonprofits as efficiently as possible ? Consider the design of internal controls and determine whether the internal controls have been implemented (including areas specifically identified by the nonprofit audit guide) ? Perform risk assessments under the new risk assessment auditing standards ? Understand audit areas that specifically apply to nonprofits
? Assessing the risk of material misstatement ? Identifying significant risk and fraud risk ? Understanding and documenting the system of internal control over financial reporting ? Identifying the appropriate level of audit procedure in response to assessed risk ? Substantive tests for nonprofit specific account balances and classes of transactions including revenue recognition and financial statement presentation
DESIGNED FORPractitioners who audit nonprofit organizations, CPAs or others new to working in nonprofit organizations or interested in how audits are conducted.
FIELD OF STUDY