Audit of Smaller Entities and NPOs

Question 1

Is audit of smaller entities mandatory?

Answer 1

No, it isn’t. Unless the entities would want to benefit out of it.

Question 2

Pros of auditing a smaller entity?

Answer 2

1. 100% transactions can be checked
2. There is low risk
3. Straightforward systems

Question 3

What is important for the auditor to have, to audit NPOs?

Answer 3

Have prior experience, expertise team and maintain code of ethics

Question 4

Why do auditors not usually audit smaller entities?

Answer 4

1. Owner and manager are the same
2. Expensive
3. Exempted in UK anyways