We provide some thoughts on how our clients can help us to carry out the audit efficiently, and in so doing help keep costs down.
Here, we examine the main purpose of the audit: to provide an opinion on the accounts. Do they, in the famous phrase of the profession, provide a true and fair view of the organisations finances?
Although we are required to give an opinion, it is the responsibility of the trustees to prepare the annual accounts. Of course, we are often asked to help in making them SORP compliant. We also frequently assist with the preparation of monthly management accounts. Nevertheless, the ultimate responsibility rests with the trustees.
No doubt most people involved in charity management know this. However, we sometimes find that there is a degree of uncertainty about what, specifically, an audit coves (and what it dose not) the expectation gap, as it is sometimes called. This is particularly true when it comes to the effectiveness of systems and controls, and the assessment of risk.
This policy applies to trustees and all staff, and should be read in conjunction with the declaration of interests form.
Trustees have a legal obligation to act in the best interests of the charity, and in accordance with the charity's governing document. Staff and volunteers have similar obligations. Conflicts of interests may arise where an individual's personal or family interest and/or loyalties conflict with those of the charity. Such conflicts may create problems; they can;
(a) Meet its legal and other obligations, e.g. Inland Revenue, Customs & Excise, organisation law, common law and to funders.
(b) Enable the Management Committee to be in proper financial control of Name of organisation and make proper financial decisions.
(c) Enable Name of organisation to meet the contractual obligations and requirements of funders.