AICPA Quality Control Review Checklist for Nonprofit
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AICPA Quality Control Review Checklist for Nonprofit
1
Identify the nonprofit organization under review
2
Gather the organization's financial reports and records
3
Understand the organization's financial reporting process
4
Inspect the internal control structure of the organization
5
Audit the organization's balance sheets and income statements
6
Evaluate the presentation and disclosure of the financial reports
7
Identify any non-compliance with generally accepted accounting principles
8
Prepare report of the investigation carried out
9
Review relationship between organization and its auditors
10
Evaluate risk management practices in the organization
11
Approval: Audit Manager
12
Discuss findings with the organization's management team
13
Request for any necessary amendments to be made in the financial reports
14
Re-evaluate financial reports after adjustments (if any)
15
Approval: Senior Auditor
16
Submit final quality control report to AICPA
17
Retain a copy of the executed quality control review checklist
Identify the nonprofit organization under review
This task involves identifying the specific nonprofit organization that will be undergoing the quality control review. It is crucial to accurately identify the organization to ensure the review is conducted on the correct entity. The desired result is to have the correct nonprofit organization for review.
Gather the organization's financial reports and records
In this task, gather all the financial reports and records of the nonprofit organization. These documents will provide the necessary information for the quality control review. The desired result is to have all the relevant financial reports and records in one place for examination.
Understand the organization's financial reporting process
To conduct a successful quality control review, it is essential to have a clear understanding of the nonprofit organization's financial reporting process. This task aims to gain insights into the process and identify any potential areas of concern. The desired result is to comprehend the steps involved in the financial reporting process.
Inspect the internal control structure of the organization
This task involves inspecting the internal control structure of the nonprofit organization. The internal control structure helps ensure the reliability of financial reporting and compliance with applicable laws and regulations. The desired result is to identify any weaknesses or deficiencies in the internal control structure.
1
Inadequate segregation of duties
2
Lack of proper authorization procedures
3
Insufficient documentation
4
Ineffective monitoring procedures
5
Poor communication channels
Audit the organization's balance sheets and income statements
In this task, carefully audit the nonprofit organization's balance sheets and income statements. By examining these financial statements, you can assess the accuracy of the reported financial position and performance. The desired result is to have accurate audit findings for the balance sheets and income statements.
Evaluate the presentation and disclosure of the financial reports
Evaluate the presentation and disclosure of the nonprofit organization's financial reports. This includes assessing the clarity, completeness, and conformity with accounting principles. The desired result is to ensure that the financial reports are transparent and meet the required standards.
1
Excellent
2
Good
3
Fair
4
Poor
5
Not Applicable
1
Fully Compliant
2
Mostly Compliant
3
Partially Compliant
4
Not Compliant
5
Not Applicable
Identify any non-compliance with generally accepted accounting principles
Identify any instances of non-compliance with generally accepted accounting principles (GAAP) in the nonprofit organization's financial reports. This task aims to highlight discrepancies and deviations from the required accounting standards. The desired result is to identify and address non-compliance issues.
Prepare report of the investigation carried out
Prepare a comprehensive report summarizing the investigation carried out during the quality control review. The report should include all relevant findings, recommendations, and suggestions for improvement. The desired result is to have a well-documented report of the investigation with clear and actionable recommendations.
Review relationship between organization and its auditors
Review the relationship between the nonprofit organization and its auditors. This task aims to identify any potential conflicts of interest or issues that may affect the objectivity and independence of the audit process. The desired result is to assess the strength and appropriateness of the relationship between the organization and its auditors.
1
Strong and Independent
2
Moderate but Objective
3
Minor Conflicts of Interest
4
Severe Conflicts of Interest
5
Not Applicable
Evaluate risk management practices in the organization
Evaluate the risk management practices implemented by the nonprofit organization. Risk management is crucial for identifying and addressing potential risks that may impact the organization's financial stability. The desired result is to assess the effectiveness of the organization's risk management practices.
1
Highly Effective
2
Moderately Effective
3
Somewhat Effective
4
Ineffective
5
Not Applicable
Approval: Audit Manager
Will be submitted for approval:
Audit the organization's balance sheets and income statements
Will be submitted
Evaluate the presentation and disclosure of the financial reports
Will be submitted
Identify any non-compliance with generally accepted accounting principles
Will be submitted
Prepare report of the investigation carried out
Will be submitted
Review relationship between organization and its auditors
Will be submitted
Evaluate risk management practices in the organization
Will be submitted
Discuss findings with the organization's management team
Arrange a meeting with the organization's management team to discuss the findings of the quality control review. This task aims to ensure effective communication and understanding of the review results. The desired result is to have a productive discussion with the management team regarding the findings.
Request for any necessary amendments to be made in the financial reports
Request the nonprofit organization to make any necessary amendments or corrections to the financial reports based on the review findings. This task ensures that the financial reports accurately reflect the organization's financial position. The desired result is to have the requested amendments made to the financial reports.
Re-evaluate financial reports after adjustments (if any)
Re-evaluate the nonprofit organization's financial reports after the requested amendments or adjustments have been made. This task ensures that the financial reports accurately represent the revised financial position. The desired result is to have accurate and updated financial reports.
1
Fully Accurate
2
Mostly Accurate
3
Partially Accurate
4
Inaccurate
5
Not Applicable
Approval: Senior Auditor
Submit final quality control report to AICPA
Submit the final quality control report to the American Institute of Certified Public Accountants (AICPA). This task marks the completion of the quality control review process. The desired result is to have the final report submitted to AICPA for review and feedback.
Retain a copy of the executed quality control review checklist
Retain a copy of the executed quality control review checklist for future reference and documentation. This ensures that the checklist is available for review or audits. The desired result is to have a copy of the completed checklist retained for record-keeping.
