DO YOU NEED TO HAVE AN EXTERNAL AUDIT?
The third sector includes voluntary and community organizations, social, mutual and cooperative entities, that is, non-profit. In these organizations, there is a need to improve reliability and transparency in financial statements, since they obtain resources from the private sector, the government, and individuals to finance their activities. Studies identified the perception of accountants and non-accountants, regarding the possible contributions that external auditing of the third sector in the needs identified, considering it as an instrument of transparency in accountability, considering that the third sector also has embryonic research and few relate the work of the external auditor in these organizations.
A external auditing of the third sector It is a requirement that may be statutory or legal, at the request of the Public Prosecutor's Office when sealing foundations, or required on a mandatory basis in the case of The SCIPs When do they celebrate Terms of partnership in an amount above R$ 600,000.00 or when entities holding CEBAS register annual revenues in excess of R$ 3,600,000.00 up to the year 2017, and R$ 4,800,000.00 starting in 2018. It may also arise at the request of donors and funders, especially international ones, in order to ensure compliance with Brazilian accounting principles and standards by the entities to which they intend to contribute resources, or even due to the liberality of the governing body.
There are factors that influence external auditing of the third sector, such as the Accounting Standards (Law 13,019/14, Law 12,101/09 - CEBAS), the OSC's governance structure, internal controls, sources of resources, etc. and must be carried out by independent auditors, authorized by the CRC - Regional Accounting Council and in some cases also registered with the CVM - Securities and Exchange Commission.
Not all non-profit organizations are required to carry out an independent audit, however, with the increasing regulation for these entities and because their operations are similar to those of companies in general, external auditing of the third sector it has become a valuable tool for its management, be it of any size, since the possible contingencies brought about by management, fiscal, financial and labor risks also exist in these organizations.
Many non-profit entities are already aware of the value that the work of external auditing of the third sector brings to the organization and they hire the service, understanding that external auditing of the third sector, in addition to contributing to the credibility of financial statements, it also contributes to the improvement of internal controls and aggregates concepts of corporate governance. It is not enough to provide excellent care if the organization does not value correct bookkeeping and good controls to support the service provided.
All of these benefits assist management in complying with obligations and provide the necessary transparency so that they are better able to raise funds in the market, in addition to providing sustainability in the different sectors in which they operate.
TATICCA — ALLINIAL GLOBAL audits and issues reports on the financial statements and other reports of third sector entities, in compliance with the guidelines of the Federal Accounting Council - CFC and the entities themselves. Contact us to learn more about the practical aspects of Third sector auditing.
Contact TATICCA — ALLINIAL GLOBAL, which provides integrated auditing, accounting, tax, corporate finance, financial advisory, risk advisory, technology, business consulting and training services. For more information, visit www.taticca.com.br or email taticca@taticca.com.br. Our company has professionals with extensive experience in the market and has certified methodologies for carrying out activities.
