All NGOs are required to apply for registration within one year from the date of their creation. All NGOs are required to file the return by the 30th September of the assessment year. The return must be accompanied by an Audit Report in Form 10B prescribed under Rule 17B of the Income-Tax Rule, 1962.
Audit Of Non Governmental Organizations(NGOs)
NGO has its own memorandum. S, an auditor should study it to know its activities.
NGOS may receive grant from foreign institutions. So, auditor should check whether it is received as per the provision of financial rules and regulations of the nation or not.
Auditor should check the use of government's grants and proper account is maintained for the recording of such grants or not.
If such institution has received donation from any individual or organization, an auditor should check accounting of such amount and its use.
Auditor should examine the amount received as subscription ratifying with counterfoils of the receipts.
Auditor should study the decisions taken by the executives.
Auditor should make physical verification of assets ratifying with store ledger.
Auditor should check the liabilities and also that its assets and its transfer is proper or not.