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Professional Charity Audit Services in Hong Kong
What to Keep in Mind When Conducting Audits for Charities
The audit process for charities and non-government organisations (NGOs) is a little different from commercial organisations. That’s why you need professional Charity Audit Services in Hong Kong.
Why Audits Are Different for Charities
The daily operations and structure of a charity is different from a commercial organisation. As such, the auditing process and compliance requirements differ. Professional auditors like 3E Accounting customise our process based on the client’s needs. Customisation is necessary to avoid deficiencies in the audits conducted.
What to Keep in Mind When Conducting Charity Audit Services in Hong Kong
When auditing a charity or NGO, there are certain aspects to keep in mind:
- Knowing Your Client – Auditors must have a thorough understanding of every client they have. This requirement is per the Hong Kong Standards on Auditing. You need to know the client’s ownership, governance structure, operations and internal controls. Only with a thorough understanding can a proper audit procedure be put in place.
- Revenue Insight – Not all charities and NGOs have sufficient control on how donations and income are handles. Auditors must address the risk of material understatement of revenue. All income sources must be accounted for and recognised in the ledger. Sufficient documentation evidence must be obtained and provided to ensure revenue records are complete.
- Nature of Expenditure – Auditors must understand the nature of expenditure when charity audit services in Hong Kong are conducted. This helps to ascertain the client’s propriety. Auditors are responsible for ensuring these institutions comply with governance structures and other requirements that may be relevant.
- Any Relevant Related Party Transactions – Identifying the any relevant third party transactions is vital. Especially when charities are at a higher risk of improper interest segregations since they are run by fewer individuals.
- Other Considerations – Charities might be prone to illegal activities and money-laundering. This is something auditors must keep in mind. They have a legal obligation to abide by the Code of Ethics for Professional Accountants. The code is under the Guidelines on Anti-Money Laundering and Counter-Terrorist Financing for Professional Accountants. Audits on charities must be as stringent as any other organisation.
Need Professional Assistance?
3E Accounting ensures complete compliance through our associate’s Charity Audit Services in Hong Kong. Our team of professionals are thorough about our due diligence and record keeping. We conduct a thorough and in-depth assessment of your charity so your audit process is as smooth as possible. For more information, contact our team today.