Do CPA firms have a responsibility to perform audits of charitable organizations for reduced or lower than normal audit fees? If auditors perform audits of not-for-profits at discounted fees, what impact is this likely to have on the quantity and quality of audit effort the auditor puts into the audit? Other than audit fees, what other benefits do accounting firms accrue by auditing a charity? Discuss the issue of the level of risk an auditor may associate with performing the audit of a not-for-profit organization.© BrainMass Inc. brainmass.com June 4, 2020, 5:14 am ad1c9bdddf
The response addresses the query posted in 478 words with APA references.
This section illustrates the responsibility of a CPA firm towards a non-profit organization. It also discusses the impact of CPA firms charging lesser fees from non-profit organizations. Further, any specific risks associated with performance of such audit has also been described.
Audit of a charitable organization should be directed towards checking the proper utilization of the available funds. A CPA firm could provide the auditing services to the non-profit organization so as to examine the effective utilization of the donations and grants. However, there are comparatively lesser audit risks in Non-Profit Organizations (NPO) as compared to any other business. One of the reasons is the protective function performed by the trustees ...
The expert determines if CPA firms have a responsibility to perform audits of charitable organizations for reduced or lower than normal audit fees. The response addresses the query posted in 478 words with APA references.