Is Really A Charity Audit Useful?

Charities and churches are growing worldwide, so are their transactions. As these charities deal with the funds generated by the general individuals, so it is advisable for them to perform audit at least once a year in order to take care of the charities properly. Charity or chapels audit could turn to be an accurate way of finding how much of donations are collected and are those funds distributed or allocated properly in order to make a difference.

What will an auditor exactly do?

It sounds quite daunting, but a registered or appointed auditor will pore over your organization’s financial records to find out whether they show a fair and exact view. If you are thinking to do it yourself, then it can turn to be a headache for you, as it could be very stressful. 

However, it is not a big deal anymore to perform your audit yourself as many auditing softwares have entered the market and they offer many of the latest features at the same time that too without hiring those audit professionals.

What all does a charity audit involve?

According to the charity commission, an audit comprises of an overall examination of the books of accounts by a full-legalized way, which enables to audit your books by the way of law.

The Auditing Practice Board is a part of the Financial Reporting Council, providing guidance and a set of standards for auditors in the country itself fulfilling two of its objectives, which line up as follows:

• First is to obtain a reasonable assurance about whether the financial statements are free from any of the material misstatements.
• Another is to report the statements of the organizations and communicate it well with the International Standards of Auditing in relation to the auditor’s workings.

If you are not in a mood of appointing an auditor for your full working, then you can do it yourself by using various auditing softwares.

However, for this you have to make sure that your accounts are being managed in a proper way. Take your time to think about your current practices and various techniques through which you can find a room for improvement in the areas that are not doing well. In addition, you can go for various accounting softwares in order to perform the task properly.

Advantages of an auditing software:

Going through an audit process will ensure that your organization is in a healthy financial state. It also provides a level of goodwill to your charity as through an audit program all the donators would become confident enough that their money is lying in the safe hands and is continuously leading towards a brighter tomorrow.