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Introduction 2
References 51
1
Introduction
Since Many Years, Man was doing his work and make its accounts
science and technology And the spread of trade across the world It has
After the creation of accounting science the development of trade and the
Auditing.
Auditing become the first science that make the owner and the donor feel
safety when he see the signature of the external auditor on audit report.
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Chapter 1: Research Proposal
Research Title :
On Non-profit Organizations.
Research Problem:
When many people talk about audit they forgot an important type of audit
discuss this.
Assumption:
Research Hypotheses:
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2- There is a different between accounting for profit
Research objectives:
nonprofit organization.
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3- Differentiate the accounting standards used in profit and
nonprofit organization.
nonprofit organization.
organization.
nonprofit organizations.
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Research Methodology:
2- Research Sample:
Companies.
Determinants Of Research:
Companies and audit Offices among Gaza Strip Because Of the Israeli
restrictions.
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Chapter 2:
Research in Theory:
assurance that the statements are free from material error. Hence,
audits, a set of financial statements are said to be true and fair when they
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professionals who specialize in security audits, information systems
material, labor or other items of cost. In simple words the term, cost
the product has been arrived at, in accordance with principles of cost
accounting."
that they can rely upon the auditor's opinion on the fairness of financial
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The Definition for Auditing and Assurance Standard (AAS) 1 by ICAI -
entity, whether profit oriented or not, and irrespective of its size or legal
an opinion thereon
The most used external audit standards are the US GAAS of the
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International Standards on Auditing developed by the International
of Accountants
favorable assessments.
The most used Internal Audit standards are those of the Institute of
Internal Auditors
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• Consultant auditors are external personnel contracted by the
This differs from the external auditor, who follows their own
used when the firm lacks sufficient expertise to audit certain areas,
accounting and auditing job, in which the public employees were keeping
The history record that both Greece and Egypt governments were using
The auditor in Greece was review the entries recorded in books. The
listening.
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Then in fifteenth century the double entry method discovered, that lead
the implementation of auditing more than easy and spread that lead to
establish huge projects and reason which help to develop auditing job and
established.
that considered danger and important in the same time, it form important
The taxation and financial polices were playing important rule in auditing
developing.
Canada in 1880 then France 1881, then USA in 1882, Germany 1896,
organize.
The job and protect members behalf in societies such as in USA and UK
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1- American Institute of Certified Public Accountants (AICPA)
-USA
There are many groups depend on Auditor report for make specific
bodies.
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Management depend completely upon accounting data, in planning
procedures
period.
a- Main objectives:
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- ensure of truth of financial statements
b- Secondary objectives:
- discover fraud.
2- Modern objectives:
a-control the plan and follow-up it's executes and the range of
goals achievement.
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Chapter 3: Differences between profit and nonprofit organizations:
Profit organization
categories':
he die.
Nonprofit organization:
Organization does not have share holders it may have members, it may be
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have delegate structure to allow for the representation of groups as
members.
The main goal for nonprofit organization is not a chive profit but to serve
the society.
1-Profit organization:
2- Nonprofit organizations:
Most jurisdictions have laws governing the setting up, running, and
both profit and nonprofit must have board members, steering committee
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Financial statements: (13)
operation of the enterprise. These include sale and the various expenses
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For large corporations, these statements are often complex and may
item on the balance sheet, income statement and cash flow statement in
purposes:
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with a more detailed understanding of the figures. These statements are
rankings.
ascertain the propriety and accuracy of taxes and other duties declared
Media and the general public are also interested in financial statements
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Financial statements of non-profit organizations:
(listing income and expenses) similar to the "Profit and Loss statement"
released after the donor's time or purpose restrictions have been met), and
Internal System:
1- Profit organization
capital.
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Board of
Director
General
Manager
From the chart we show that the management and it's department
(financial, marketing, production and so on) seeking just to get profit and
Nonprofit Organization:
In nonprofit organization the board of director don't seek to get profit but
to search and get donations from donors to service society from may
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Board of
Director
Financial Services
Management Management
organization.
Profit Organizations:
needs to make work easier and more clear than any time else.
Based on the type of profit organizations the documents issued, and the
documents:
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Purchases Purchase invoice Purchase invoice Just expense invoice
Order , Bids … Order … etc
Nonprofit Organizations:
Because nonprofit organizations in not for profit that mean it did not sell
goods or make a service to have money , it's goal is social to help citizens
basis that the time we pay we take a receipt voucher and the time we take
profit organizations:
London and its members are 14 around the world, the international
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Now we have 41 international accounting standards, it edited in 2010 to
the profit and nonprofit organizations and there are different type of
standards used in this organizations some of it is the same and the other is
modified accrual basis as suitable for the king of business but in the
this organizations.
General Standards
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3. The auditor must use due professional care during the
whether due to error or fraud, and to design the nature, timing, and
Standards of Reporting
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3. When the auditor determines that informative disclosures are
report.
auditor's report.
organization.
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for that.
development.
used.
and procedures for internal control systems and know how to put
if it was agreed that the degree of risk is high in that reveal internal
they are not in the closing statements are risks checking high or
when the degree of risk in auditing low must understand the control
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systems and identify things strengthen the conviction that the
4. Empirical Audit:
timing of audit work and the time required for the audit and the
This Stage Depend On The auditor size of the work not on the kind
of it.
after the auditor finish his work he will assess the results of the
In This Stage We can say that the nature of the profit organizations
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6. Auditor's Report:
The Last Stage and procedure in the audit procedures is the auditor
report which in the auditor give his opinion about the fairness of the
loss, Trade, Cash Flow...Etc., but these financial statements are not
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Chapter 4:
This Chapter includes the previous studies and interviews with the
research.
• Previous Stidies:
preparation and issuance of audit reports for nonissuers. Rules 201 and
of the SASs to identify those that are applicable to his or her audit and
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entities in specialized industries. Interpretive publications are issued
under the authority of the ASB. The auditor should identify interpretive
publications applicable to his or her audit. If the auditor does not apply
at mtanney@alpern.com.
have been covered in the media in the recent past including WorldCom,
the President signed the Sarbanes-Oxley Act of 2002. While the Act
At about the same time as the Sarbanes-Oxley Act was passed, the
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(Statement on Auditing Standards No. 99, SAS 99). The new set of rules
While the new standard does not change the auditor’s responsibility for
fraud detection, it does require the auditor to take extra steps to uncover
it. SAS 99 will result in a substantial change in audit practice and more
and determine what the clients are doing to mitigate those risks.
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Implementing new audit procedures can be challenging and
(i.e., stealing)
assets
The following are some of the effects an organization may notice during
the audit as the audit team applies the requirements of the new standard:
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• Examination of journal entries and other adjustments
In conclusion, SAS 99 will have an impact on the way audits are done for
qualified and trained to dig through financial records and ferret out the
Next are seven questions asked to the auditors including a question for
every assumption and then the answers for every question by the auditors.
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The Questions:
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2. Yes the different in accounts uses, example: revenues in the profit
cash base.
6. Financial statements for profit is the income and balance sheet and
xxxxx:
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we talk about difference between profit and nonprofit
has its goal in making profit but nonprofit has its goal to be
nonprofit organization.
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until now, but there is a new low for the nonprofit
xxxxx:
organizations.
some.
3. I don't think that there is any relation make different between audit
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4. The audit procedures different between all kinds of companies
organization.
7. Every organization has its Palestinian low and the same thing is for
xxxx:
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contain the standards used to account for profit and nonprofit and
maybe the difference can just be in the cash base use to account for
them.
3. The audit standards don't make any difference in these two types of
organizations.
profit make profit so there is sales invoices and service invoices but
balance sheet and cash flow. Nonprofit organization has profit and
organizations.
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xxxxx:
2. Yes, and an example is when you talk about capital we can't make
xxxxx:
1. Oh, yeah the difference can be mainly in the goal of every type of
these organizations.
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2. For most people the accounting for profit and nonprofit
another example accounting for debtors and creditors, there are big
different between the debtors and creditors for such profit and
nonprofit organizations.
4. I Think The Stages In every Procedure which differ but The mail
organizations there are profit and loss account and change in net
applied in 2009.
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xxxx:
of the difference of the mean, the goal and the projects of every
3. The standards of audit talk about the general rules to audit and
nonprofit organizations.
the statements used explain its profit like income statement and
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much is his capital as in balance sheet. But the financial statements
for nonprofit explain the revenues and where is it gone like in the
7. Yes there is low for profit organizations and low for nonprofit
organization.
xxxxx:
country.
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4. Every procedure in audit procedures has its nature which differ
5. Profit organization use accrual basis and nonprofit use cash basis
6. Many people think that the financial statements for the nonprofit
net assets and liabilities , but that’s wrong because now we have
7. The main effective difference which make the low differ is the base
xxxxx:
the goal, third in the documents used, forth is in the nature of the
work.
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2. Yes accounting is different for the organizations, differ because
organizations.
4. Because the first audit procedure is planning and its differ between
resulting.
5. The low use in the country for every organization element the
xxxxx:
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boor families, help students… etc., but profit organization has
many kinds such as industrial, trade, service and all these profit
organizations there are profit and loss statement and change in net
7. The low for profit organization is the corporations but for nonprofit
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Chapter 5:
Through our Interviews with the auditors, illustrated that our assumptions
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5- There is a difference between audit procedures used in audit
organization.
All the sample agreed that every organization has its low.
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Recommendations:
field.
companies.
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References:
2. www.auditnet.org
4. www.pacpa.ps
5. http://www.met.gov.ps/DesktopDefault.aspx?lng=2 موقع
9. www.accountingeducation.com
10. www.pwc.com
11. www.deloitte.com
financial statements.
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