Cost-effective Audit for Charities - Singapore
Audits are important for charities in Singapore to ensure transparency and accountability. However, the cost can be a concern. Here's how to achieve a cost-effective audit in Singapore:
Understand the Requirements:
Audit requirements depend on your charity's legal form and size.
Societies with gross income or expenditure exceeding $500,000 require an audit.
Trusts may need one if mandated by their trust deed.
Institutions of a Public Character (IPCs) always require an audit.
Strategies for Cost-Effectiveness:
Maintain good records:
Clear and organized financial records minimize audit time and complexity.
Invest in accounting software or bookkeeping services if needed.
Prepare for the audit:
Gather necessary documents like bank statements and receipts beforehand.
Reconcile accounts regularly to identify and address discrepancies.
Choose the right auditor:
Consider getting quotes from several auditors with experience in the non-profit sector.
Smaller firms might offer competitive rates.
Communicate and collaborate:
Open communication with the auditor helps them understand your operations and reduces time spent clarifying information.
How Bestar can Help
Cost-effective Audit for Charities - Singapore
Bestar has experience in the non-profit sector. We can be a valuable asset to charities in Singapore for several reasons:
Familiarity with Non-Profit Accounting Standards: Non-profits have unique transactions like grants, donations, and fundraising income. Bestar understands these nuances and can ensure these transactions are recorded correctly according to non-profit accounting standards.
Increased Efficiency and Streamlined Audits: Having experience with non-profits allows Bestar to identify areas requiring focus and avoid unnecessary procedures. This can save time and cost during the audit process.
Better Risk Assessment: Non-profit specific knowledge helps Bestar identifies and assesses risks specific to charities, such as fraud or grant compliance issues. This can help charities mitigate these risks and improve their financial controls.
Clearer Communication: Understanding the charity's mission and operations allows Bestar to communicate our findings in a way that is relevant and actionable for the charity's leadership. This can help the charity address any issues identified and improve their financial management practices.
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