Attest services rendered to not-for-profit entities (NFPs) provide assurance to stakeholders as to an organization’s financial condition, operations and internal controls.
It’s an important market segment for public accounting firms because often NFP year-ends fall outside busy season, meaning work can extend to less hectic times and keep staff busy during downtimes. But sometimes NFP audits can present unique and frequently hard-to-identify independence issues.
Understanding the AICPA Code of Professional Conduct’s “Independence Rule” can provide needed guidance when concerns over independence arise.