Key Financial Statements Audited
Organizations involved in charitable and social services undergo financial audits to ensure transparency and accountability.
The key financial statements audited in such organizations are:
1. Income and Expenditure Statement:
This statement provides a summary of the organization’s revenues and expenses during a specific period.
It outlines the sources of income, such as donations, grants, and fundraising activities, as well as the various expenses incurred to carry out charitable and social service activities.
The audit of this statement ensures that the funds are being utilized in alignment with the organization’s objectives and compliance with applicable regulations.
2. Balance Sheet:
The balance sheet provides a snapshot of the organization’s financial position at a particular point in time.
It presents the assets owned by the organization, liabilities owed, and the organization’s net assets (assets minus liabilities).
Auditing the balance sheet verifies the accuracy of reported assets and liabilities, ensuring that the financial position is accurately represented.
3. Cash Flow Statement:
The cash flow statement outlines the inflows and outflows of cash and cash equivalents during a given period.
For charitable and social service organizations, this statement is crucial in demonstrating how cash is generated and used for operational, investment, and financing activities.
An audit of the cash flow statement ensures that the reported cash flows are accurate and in accordance with accounting standards.
Auditing these key financial statements is essential to maintain credibility, demonstrate accountability to donors and stakeholders, and adhere to regulatory requirements within the context of charitable and social service activities.
To visit: https://www.mca.gov.in/
For further details access our website: https://vibrantfinserv.com