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HOW LONG DOES AN AUDIT TAKE
About 2 – 3 weeks. The time delay can depend on how long it takes to get the confirmation of bank balances, loans, outstanding debtor balances, or other communications where we consider that the information is relevant to the financial statements.
WE’VE LOST SOME ACCOUNTING RECORD
The loss of vital accounting records will lead to a qualified audit report. i.e. a limitation on our work. You will need to discuss this with us prior to engaging on the audit.
WE HAVE NOT BEEN AUDITED FOR YEARS
An audit need only to be done on the current year. If the deed of constitution requires an audit every year, then the leadership can consider bring a motion to the AGM for the deed to be amended, thus requiring an audit as required by the management, or the members. This is possible where there are no external users of the financial reports.
OUR TRUST DEED / CONSTITUTION REQUIRES AN AUDIT BUT THE MEMBERS OR FUNDERS DO NOT REQUIRE AN AUDIT.
The members can be advised of a motion to change the deed requiring that an audit be done as required by the management, or by the members at any special meeting. The membership could appoint an examiner, from the membership, at the AGM, for the purpose of checking the accounting processes and information supplied to the members, for the AGM. This can give an adequate assurance for small societies or clubs where there is no need for external reporting.
WE HAVE OUR ACCOUNTS PREPARED BY A CHARTERED ACCOUNTANT SO WILL THE AUDIT FEE BE LESS.
Yes, audit fees can be reduced because of the time saved when properly constructed and reconciled financial reports are presented for audit. Also, the accountant will provide a file showing how they have reconciled key balances, thus showing some integrity of the accounting systems, and accuracy of some figures reported in the financial statements.
OUR TREASURER DOES EVERYTHING
Reliance on one person for all the accounting processing, receipting, and payments does give rise to more auditing work because the risk of errors or omissions is higher. These risks can be minimized if the organizations governance receive monthly financial reports showing the actual compared to budget, and a list of payments made.
OUR ACCOUNTING SYSTEMS ARE VERY OLD
Old systems can still be effective. To assess this we would like to see examples of the reports provided to the management committee. We will need a printed trial balance, and general ledger detail, if the accounting system does not export this information to a text file or excel.
WE USE EXCEL FOR ACCOUNTING
This is fine as long as you can clearly show how an opening bank reconciliation, plus total income for the year, less total payments, equals the closing bank reconciliation.
The information in the excel sheets for income and payments details, should be checked off against the bank statements.
WE SUSPECT THAT AN EMPLOYEE IS MISAPPROPRIATING MONEY
Should you suspect errors or fraud in your financial accounts, then you will need to advise us of this prior to us starting on the audit. We may need to consider what extra audit work will be required, and the cost of this, prior to starting the audit. |
