Planning Materiality in Audits of Nonprofit Organizations

This article is about the assessment of materiality in planning and completing an audit of a nonprofit organization is inherently difficult. The for-profit world's rules of thumb for materiality thresholds, such as calculating a percentage of net income, do not easily apply to charitable organizations. Instead, auditors apply various percentages to total assets, total revenues, or some other measure of an organization's size.

Provided by: The CPA Journal Topic: Software Date Added: Jan 2003 Format: HTML

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