Non profit organization (NGO ) are those social institution who is operating their social activities with public donations . So, making the accounts and financial statement is needed for showing the performance to general public . Its accounts are also audited by independent Chartered Accountant . The procedure for auditing is very simple .
- Like auditing for other business accounts , auditor will audit first day book with all previous data . After this he will check ledger accounts and trial balance .
- Checking of receipt and payment account and income and expenditure accounts are very important in the auditing for NGO. What amount NGO has received from what source and also check its voucher and also check different expenses of NGO . He will see whether expenses are revenue or capital nature and accountant of NGO has proper distribute it in final account.
- He will also make audit report after seeing fully all financial statements including social accounting specially in USA and UK .