NGO & TRUST AUDITING
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Audit Of NGO & TRUST
Audit of charitable trust refers to the compulsory audit that a trust has to go through if its income exceeds the taxable limit. So, your trust is exempt from audit if its income is less than the taxable limit in the Previous Year.
What is a Charitable Trust?
A trust with the main object of benefiting the community or public at large. A trust is charitable only if it has the following objects.
- Relief of the poor
- Medical Relief
- Working for other objects of general public utility
This definition is only inclusive. So, other functions relating to public utility may also be considered as charitable. But, such purpose must be impersonal as well as public in nature. The object of the trust and the scope of benefit to public are relevant here.
What is the Procedure of NGO & Trust Audit?
It involves the following steps.
- Examination of accounts and other details.
- Forming an audit opinion.
- Preparing an audit report.
You will need to give the auditor access to following details and documents.
- Objectives and by-laws of the trust.
- Balance Sheet.
- Details of income and expenses during the audit period.
- Profit and Loss account.
- Details of application of income for charitable or non-charitable purposes.
There is no fixed timeline. But, the audit return needs to be submitted before 30th September of the relevant Assessment Year.