Auditing Nonprofit Entities (CPE Course)

CPE Credit: 3 hours

Course Type: Downloaded PDF materials with online test

Price (with PDF Textbook): $35

Course Description
Nonprofit entities present significant auditing challenges, since their reported results are closely tied to the nature of the contributions they receive, donor restrictions on the use of those contributions, and the need to present a high level of program effectiveness to donors. In the Auditing Nonprofit Entities course, we examine how the auditor can navigate these challenges by delving into nonprofit controls, as well as audit procedures that are specific to the industry. Particular attention is paid to the auditing of contributions, donor restrictions, endowment funds, fund-raising expenses, and split-interest agreements.

Author: Steven Bragg

Course Number: AU1034

Learning Objectives

• Recognize why an audit strategy is needed, and what it controls.

• Identify the issues associated with the environment in which a nonprofit operates.

• Specify the risk assessment steps associated with the audit of a nonprofit.

• Recognize when a nonprofit’s internal audit function can be used by the auditor.

• Identify the cash controls that a nonprofit entity might use.

• Specify the controls that a nonprofit entity might use over the valuation of contributions.

• Recognize when a misstatement is considered to be material.

• Identify the actions that can be taken to reduce detection risk.

• Specify the events or conditions that indicate the presence of a risk of material misstatement.

• Identify the areas in which an auditor may choose to hire a specialist when auditing a nonprofit entity.

• Specify who is responsible for fraud prevention and detection.

Level: Overview

Instructional Method: QAS Self-Study

NASBA Category: Auditing

Prerequisites: None

Advance Preparation: None

Latest Review Date: August 2023

Program Registration Requirements: Click on "Purchase Course" near the top of this page to pay for and access the course. You will then be able to download the course as a PDF file, then take an on-line examination, and then download a certificate of completion if you pass the examination.

Program Refund Policy: For more information regarding administrative policies concerning complaints, refunds, and other matters, see our policies page.

AccountingTools, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have the final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.

The NASBA sponsor identification number for Accountingtools, Inc. is 115881.

AccountingTools is an IRS Approved Continuing Education Provider. We are compliant with the requirements for continuing education providers (as described in sections 10.6 and 10.9 of the Department of Treasury’s Circular No. 230 and in other IRS guidance, forms, and instructions). Our IRS Approved Continuing Education Provider number is 72821.