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Unformatted text preview: and expenditure account plus a statement of affairs. Audits are becoming important in the non profit sector because: Some people have fraudulently registered their concerns as not for profit, where as in fact they are carrying profit oriented activities under its cover, either to evade tax or to gain undue advantages. The accounts must therefore be audited in order to disclose such fraudulent activity and ensure an organization remains true to its cause. Non-profit organizations also emphasize on audits so that they can check upon the economy, efficiency and effectiveness of their operations. The non-profit organizations want to ensure that their financial statements present a true and fair view of their affairs, comply with relevant laws of the land and do not contain material misstatements....
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- Spring '11