What is Whistleblower protection policy? The first obligation from SOX that applies to all organizations is the requirement for a documented “whistleblower protection” policy. SOX requires all organizations, including nonprofits, to establish a means to collect, retain, and resolve claims regarding accounting, internal accounting controls, and auditing matters. The system must allow such concerns to […]
Popularity: 49% [?]
SOX consists of 11 titles, with each title having multiple sections.
Title I
Title I of SOX created a Public Company Accounting Oversight Board (PCAOB) that has extensive authority to regulate the auditors and audits of publicly held companies. The PCAOB is a nonprofit organization with strong ties to the SEC. Partial funding for the PCAOB comes […]
Popularity: 55% [?]
At the beginning of the twenty-first century, the U.S. market and its investors were stunned by a string of corporate and accounting scandals. For several years, the Enron Corporation, an energy company, participated in a number of partnership transactions that lost the organization a substantial amount of money. In 2001, Enron reported that it had […]
Popularity: 65% [?]
The auditor’s opinion can be one of five different opinions: unqualified, unqualified with explanatory language, qualified, adverse, or disclaimer of opinion.
The unqualified opinion is regarded as a clean bill of health, where the auditor makes no exceptions and does not include qualifications in the report.
An unqualified opinion should only be made when the independent auditor […]
Popularity: 50% [?]
Since potential lenders, donors, funding organizations, and other stakeholders use the financial statements to make decisions about a nonprofit’s financial health, it is important that the statements present an accurate representation of the nonprofit’s financial status. Otherwise, the stakeholders of the nonprofit may make poor decisions about making loans, giving contributions, or providing funding. One […]
Popularity: 46% [?]
Although members of the management team typically prepare the financial statements, it is the board’s responsibility to review and evaluate the statements. Most boards delegate this oversight responsibility to a committee within the board. In pubic organizations, this responsibility has increasingly fallen to the audit committee whose major task is to monitor the preparation and […]
Popularity: 57% [?]
Financial statements present information about an organization’s financial resources and liabilities at a point in time, the results of its activities during a particular period, and its flow of cash during that period. In the for-profit world, these statements focus on information that is useful in making investment and lending decisions. In the nonprofit world, […]
Popularity: 58% [?]