Audit For Non-Governmental Organizations (NGOs) In The UAE

1. Audit For Non- Governmental Organizations
(NGOs) In The UAE
NGOs, or non-governmental organizations, are independent entities that operate primarily
through public donations to achieve their charitable goals. These organizations are compelled
to maintain transparency and accountability and it can be achieved through preparing
comprehensive financial records and statements that reflect performance and demonstrate
transparent use of funds. The audit process involves an in-depth review of an organization’s
financial statements, internal control systems, and other relevant policies, as well as performing
assessments of the management’s ability to control risk. This enables NGOs to provide an
overview of their operations, showcase their impact and maintain accountability and enforce
compliance. Thus, it is essential to seek the services of accredited audit firms in Dubai.
Benefits of Conducting Audits for NGOs
The benefits of conducting audit procedures for NGOs include:
 Enhancing accuracy and integrity: Auditing assists NGOs to demonstrate the
accuracy and integrity of their financial statements and operating procedures.
 Access to expertise: NGOs can avail and maximize the expert services of
accredited UAE auditors through which compliance with financial regulations
and standards can be enforced.
 Noticing and addressing financial complexities: Auditors can provide
assistance to NGOs to notice and address possible financial intricacies.

2.  Promoting transparency and accountability: Regular auditing of NGOs helps
to create transparency and accountability.
Read more: Audit Services For Government Agencies: Challenges And Best Practices
Types of Audits for NGOs
For NGOs, four different kinds of audits can be conducted, this includes the following:
Financial Audits
Financial audits are the most common type of audit performed by NGOs. This type of audit
involves an examination of an organization’s financial statements, including its balance sheet,
income statement, and cash flow statement, to verify the accuracy and completeness of its
financial records.
Compliance Audits
NGOs in the UAE are required to comply with distinct regulations and standards. A compliance
audit is conducted to verify that the NGO is adhering to these regulations and that it is
operating within the statute’s parameters. This type of audit focuses on the organization’s
policies and procedures, as well as its compliance with relevant laws and regulations.
Risk Management Audits
It is essential for NGOs to have effective risk management systems in place. A risk management
audit assesses an organization’s ability to identify, evaluate, and manage risks. Audit helps the
NGO to identify any areas of weakness in its risk management process and to develop a plan to
address these weaknesses.
Performance Audits
Performance audits are conducted to evaluate an organization’s effectiveness in achieving its
objectives and fulfilling its mission. This type of audit assesses an NGO’s programs, policies, and
procedures to determine if they are achieving the primary objective.
Investigative Audit
When an NGO suspects a financial problem, an investigative audit is conducted, and the auditor
is expected to find and look into all the basic and secondary facts.
Read more: How to prepare for an audit of your financial statements
Assessment of Financial Reports
To make sure there are no financial irregularities, it is critical to examine the financial reports.
Examine internal controls
Testing the organization’s internal controls is an essential facet for NGOs. To evaluate the
organization’s openness and fairness in its operational processes, it is essential to make sure

3. that the organization has established controls and adheres to them. To improve the situation,
the audit report can identify the advantages and disadvantages of the internal control systems.
Analyze the risks
The assessment of risks is a crucial component in auditing NGOs. These risks may be associated
with donors, stakeholders, internal procedures, and regulations.
Examine the cash flow projections
Examining the projected cash flows is a crucial audit step. In addition to evaluating the methods
of these inflows and outflows, it may also include the cash coming into and out of the
organization. One of the main duties of auditors is to make sure that there are no unusual
activities in the cash flow.
Control reporting and results
Obtaining the desirable outcome is not sufficient, a report outlining the strengths, weaknesses,
complexities, and opportunities for improvement is an essential requirement.
The following is the auditing process:
 First, the auditor examines the accounts using the previous information,
accounts, and trial balance.
 The auditor then examines the income and expense accounts as well as the
receipt and payment accounts.
 The auditor then verifies the NGO’s expenditures and the overall amount it has
received. Additionally, he examines the nature of expenditures.
 Finally, the auditor prepares the audit report after carefully examining and
analyzing all of the financial accounts.
In addition, the audit may involve reviewing employee contracts, examining documents related
to grant management, evaluating asset management processes, assessing operational
efficiency, conducting an analysis of fundraising efforts, analyzing staff training programs, and
much more.
Seek the Expert Services of Top Audit Firms in
the UAE
The audit procedure for NGOs in the UAEis often a complex process which requires the expert
services of accredited audit firms in the UAE. Thus, NGOs are advised to seek the services of top
UAEaudit firms to seamlessly conduct audits and to stay compliant to audit regulations and
standards. So, contact us today and we shall be happy to assist you!
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