At Elsby, we understand the importance of a trusted and reliable audit service to protect and encourage the growth of your Charity. While audits are not mandatory for charities, a willingness to undergo one can show a commitment to being transparent and accountable. This can positively influence how benefactors view a cause. Moreover, stakeholders and trustees of not-for-profit organisations can rest easy knowing that donations are properly allocated, accounts are managed well, and there are no irregularities in financial statements. Charity audits play a crucial role in ensuring that charitable organizations operate ethically, manage funds responsibly, and fulfill their missions effectively. Audited financial statements can enhance the credibility of a charity, making it more attractive to donors and stakeholders who seek assurance about the organization’s financial integrity.
How does a Charity Audit work?
- Financial Statements Examination: We review your financial statements, including the balance sheet, income statement, and cash flow statement. This process helps ensure that the financial information presented is accurate and reflects your financial position.
- Compliance with Regulations: We assess whether the charity is adhering to relevant laws and regulations governing charitable organizations. This can include compliance with tax regulations and specific rules related to charitable activities.
- Internal Controls: We examine your internal controls and financial management practices to identify any weaknesses or areas of improvement. Strong internal controls are essential for preventing fraud and ensuring the proper use of charitable funds.
- Use of Funds: We evaluate how you use your funds, ensuring that resources are allocated according to the organization’s mission and goals. This is particularly important for maintaining the trust of donors and the public.
- Transparency and Accountability: A charity audit promotes transparency by providing an independent assessment of your financial health. This transparency contributes to your accountability to your stakeholders, including donors, beneficiaries, and the public.
- Auditor’s Report: At the conclusion of the audit, we issue a report summarizing our findings. This report typically includes an opinion on the fairness of the financial statements and may highlight any areas of concern or improvement.
At Elsby, we don’t just simply carry out an audit, our value-added service see’s us extend our support to help you mitigate risks and find areas for growth and development.
If you’d like to speak to one of our Audit team, get in touch.
Elsby are registered to carry on audit work in the UK & Ireland by the Institute of Chartered Accountants in England & Wales. Elsby and Co is a trading name of Elsby & Co (Sywell) Ltd, registered in England no. 05377378. Director Carl Elsby (ACA).