While planning the audit of an NGO, the auditor may focus on knowledge of the NGO's work, its mission and vision, updating knowledge of relevant…

While planning the audit, the auditor may concentrate on the following: Knowledge of the NGO's work, its mission and vision, areas of operations and environment in which it operate.Updating knowledge of relevant statutes especially with regard to recent amendments, circulars, judicial decisions viz. The Foreign Contribution (Regulation) Act 1976, The Societies Registration Act, 1860, The Income-tax Act 1961 etc. and the Rules related to the statutes.Reviewing the legal form of the Organisation and its Memorandum of Association, Articles of Association, Rules and Regulations.Reviewing the NGO's Organisation chart, then Financial and Administrative Manuals, Project and Programme Guidelines, Funding Agencies Requirements and formats, budgetary policies if any.Examination of minutes of the Board/Managing Committee/Governing Body/ Management and Committees thereof to ascertain the impact of any decisions on the financial records.Study the accounting system, procedures, internal controls and internal checks existing for the NGO and verify their applicability.Setting of materiality levels for audit purposes.The nature and timing of reports or other communications.The involvement of experts and their reports.Review the previous year's Audit Report.