Key Risks When Auditing a Not-For-Profit Organisation During the Pandemic

Posted on:August 1, 2020

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Covid-19 has disturbed the entire world and every type of business organization. Even the not-for-profit organizations are not exempt from its bad effects. It also has changed the process of auditing not-for-profit organisations. Some key risks are explained below which are to be carefully handled during operation.

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Assets and liabilities:

The assets and liabilities are the main courses in auditing. These are to be assessed carefully. The investments and inventory require attention also. If an organisation depends upon pledges, the percentage of un-collected pledges may show a rise due to pandemic. So, be conscious when making calculations. The time for their collection may vary from the targeted time. There may exist many unusual events during auditing due to the pandemic. For accountants who can help with annual reporting, consider Accountants Swindon at a site like https://chippendaleandclark.com/

Revenue and expenses:

The revenue is another interesting area to be careful in. Many non-profit organisations have shown a rise in their revenue due to more donations and their more demanding services during a pandemic.

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The expenses may also show an up flux due to remote working and or costs for cancelling funding events due to the pandemic. The organisations related to education also have spent some extra money for setting up online classes for needy students.

Internal control:

You have to learn the changes that arise in internal control of organisations during a pandemic due to few workers and remote working. The internal control can reveal a lot about the fair dealings of the organisation during auditing. Hence, pay special attention to this area.