Nonprofit entities present significant auditing challenges, since their reported results are closely tied to the nature of the contributions they receive, donor restrictions on the use of those contributions, and the need to present a high level of program effectiveness to donors. In the not-for-profit auditing CPE course, we examine how the auditor can navigate these challenges by delving into nonprofit controls, as well as audit procedures that are specific to the industry. Particular attention is paid to the auditing of contributions, donor restrictions, endowment funds, fund-raising expenses, and split-interest agreements in this nonprofit auditing CPE course.
Learning Objectives
Upon successful completion of this course, participants will be able to:
Recognize why an audit strategy is needed, and what it controls.
Identify the issues associated with the environment in which a nonprofit operates.
Specify the risk assessment steps associated with the audit of a nonprofit.
Recognize when a nonprofit's internal audit function can be used by the auditor.
Identify the cash controls that a nonprofit entity might use.
Specify the controls that a nonprofit entity might use over the valuation of contributions.
Recognize when a misstatement is considered to be material.
Identify the actions that can be taken to reduce detection risk.
Specify the events or conditions that indicate the presence of a risk of material misstatement.
Identify the areas in which an auditor may choose to hire a specialist when auditing a nonprofit entity.
Specify who is responsible for fraud prevention and detection.
Major Topics
Areas of Audit Interest
Audit Planning
Understanding Audit Risk
Materiality
Using the Work of an Auditor's Specialist
Developing Audit Documentation
