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Introduction
Inventory
Cost Acccounting
Chart of Accounts
Budget Formation
Standard Unit Costing
Managerial Accounting
Auditing
 

Index - Child Subjects

Introduction

The Audit Commission promotes the best use of the organization's money by ensuring the proper stewardship of public finances and by helping those responsible for organization resources to achieve economy, efficiency and effectiveness. Audits ensured that safeguards are in place against fraud and corruption and that resources are being used for the purposes intended.

It has been estimated that the accounting department in a NGO's spends up to 50% of their time in audits. Many donor's prefer to have their own audits perform the audit itself of realizing on a common audit. 

External 

The common audit is that performed during periodical time periods during the year. These audits are used in conjunction with the financial report to present to internal management, Board of Directors, Financial Institutions, etc.

Internal 

Many organizations think that he more names they get on a piece of paper the more through the auditing. As an example, in one BNGO, a purchase document was signed 16 times before the a staff member of a project received the goods he needed. This process reduced the effects of auditing by given those higher level members (who really had better things to do with their time) a false since of security. 

See Example (Auditing Policy Manual)

Donor

Many donors implement their own audits. For example, USAID requires that certain qualifying purchases be U.S. made products and carried on U.S. Carriers. 

These audits usually do NOT audit the whole organizations, but only those areas where the donor has an interest. Some Donors will make recommendations concerning the organization operations, but most do not. 

The idea that "our books were audited by a Donor" may lead to a false sense of security. 

Recommendations

• InHCc recommends that an organization implements a modern Financial Package. 

• Each organization, that is sufficient large enough, should have an Internal Audit Department. 

• Today, Financial Packages are priced at commodity prices. They are cheap, all inclusive, and easily to use. 

• The better Financial Packages sit on top of a relational database such as MS SQL and allows ad hoc queries.  The better Packages also allows remote access through the Web. 

Examples

See Example (Internal Auditing Questionire)

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