Not-for-profit entities typically possess the following traits which distinguish them from a business entity: (1) contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return; (2) operating purposes other than to provide goods or services at a profit; and (3) the absence of ownership interests like those of business entities. This course will assist you in proficiently addressing these traits in your audits of not-for-profit entities. The course materials utilize a highly illustrative and innovative format. Over a dozen focused exercises are included to provide an enhanced working knowledge of auditing not-for-profit entities.
- Key aspects of how the auditor refines the audit approach to fit the not-for-profit entity
- Audit procedures to become comfortable with management’s recording and reporting of contributions and promises to give
- Auditing how a not-for-profit entity gets from natural expenses to functional expenses
- Audit procedures related to net assets, compliance with tax laws and regulations, collections and split-interest agreements
- Perceive the key issues involved in auditing contributions and promises to give and audit procedures to address them
- Understand important aspects of auditing expenses for program services and supporting activities
- Identify how net assets and other unique characteristics of not-for-profit financial statements require special attention from the auditor