Auditors report format - non profit organization

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Dheepa R (Querist)
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07 May 2012 Hi friends,

I am urgently in need of the latest auditors report format (preferably adapted to private Non profit organizations)- can someone help? Many thanks in advance

Regards,
Dheepa

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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15 July 2024 Certainly! For a private non-profit organization, the format of the auditor's report would generally follow the standard format prescribed by auditing standards, with some adjustments specific to non-profit entities. Here’s a general outline of the format typically used for the auditor's report for a private non-profit organization:

### Auditor's Report Format for Private Non-Profit Organizations

**1. Report Title**
- **Auditor's Report** or **Independent Auditor's Report**

**2. Addressee**
- The report is typically addressed to the members of the non-profit organization.

**3. Introductory Paragraph**
- **Identification of the Financial Statements**: Reference to the financial statements audited, including the statement of financial position, statement of activities (or income and expenditure statement), statement of cash flows, and notes to the financial statements.

**4. Management's Responsibility**
- A paragraph stating that the management of the organization is responsible for the preparation and fair presentation of the financial statements in accordance with the applicable financial reporting framework (usually Accounting Standards for Non-Profit Organizations).

**5. Auditor's Responsibility**
- A paragraph stating that the auditor's responsibility is to express an opinion on the financial statements based on the audit conducted.

**6. Scope Paragraph**
- **Scope of Audit**: Description of the nature and extent of the audit procedures performed by the auditor, including testing of accounting records and other procedures considered necessary.

**7. Opinion Paragraph**
- **Opinion**: Expression of the auditor's opinion on the financial statements, stating whether they present fairly, in all material respects, the financial position of the organization as of the balance sheet date and the results of its operations for the year then ended in accordance with the applicable financial reporting framework.

**8. Emphasis of Matter (if applicable)**
- If there are any matters that the auditor wishes to emphasize to the readers of the financial statements, such as significant uncertainties or events affecting the organization, they are disclosed in this section.

**9. Other Reporting Responsibilities (if applicable)**
- Any other reporting responsibilities as required by the audit engagement or applicable laws or regulations, such as reporting on internal control deficiencies or compliance with specific funding requirements for non-profits.

**10. Signature and Date**
- The report is typically signed by the auditor, indicating the audit firm's name and address, and the date of the report.

### Example Format (Adapted for a Private Non-Profit Organization)

```
Independent Auditor's Report

To the Members of [Non-Profit Organization Name]

Opinion

We have audited the accompanying financial statements of [Non-Profit Organization Name], which comprise the statement of financial position as of [date], and the related statements of activities, cash flows, and notes to the financial statements for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with Accounting Standards for Non-Profit Organizations in [Country], and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in [Country]. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements present fairly, in all material respects, the financial position of [Non-Profit Organization Name] as of [date], and the results of its operations and its cash flows for the year then ended in accordance with Accounting Standards for Non-Profit Organizations in [Country].

[If applicable: Emphasis of Matter paragraph]

[If applicable: Other Reporting Responsibilities]

[Signature]

[Name of Audit Firm]
[Address of Audit Firm]
[Date]
```

### Note:

- **Adaptation**: The above format should be adapted to reflect the specific requirements of your jurisdiction's accounting standards and regulations for non-profit organizations.

- **Consultation**: It’s advisable to consult with your auditor or a professional familiar with audit reporting requirements for non-profit organizations in your country to ensure compliance with all relevant standards and regulations.

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