Trust and nonprofit audit support
Trusts and institutions
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Year-end
A nonprofit audit examines the accounts and evidence behind donations, grants, programme expenditure and year-end balances. Where the law needs a Chartered Accountant’s signature, an independent practising Chartered Accountant carries out that work and signs it. TheTaxCo. does not sign audits or certificates. It is not a firm of Chartered Accountants and does not carry out audits. We prepare the accounts, fund-wise schedules and supporting records.
Preparation alone does not produce an audit opinion. We identify the auditor’s appointment at the start so that our preparation work and the auditor’s responsibilities stay separate.
Identify why the audit is required
The requirement may arise from income-tax law, the organisation’s governing instrument, its legal form, a grant agreement or a recipient’s reporting conditions. More than one report may be required, and a donor utilisation certificate is not automatically the same as an audit of the organisation’s accounts.
For registered nonprofit organisations under the Income-tax Act, 2025, section 348 requires an audit where income before the relevant nonprofit provisions exceeds the maximum amount not chargeable to tax. The prescribed report is Form 112, due one month before the applicable return due date. Income-tax Act, section 348 and Income-tax Rules, 2026, rule 188.
This current-year route should not be substituted automatically into an audit relating to an earlier period. We establish the reporting year and relevant law before naming the report and its due date.
Plan around funds and activities
A restricted grant needs to be traced from its agreement and receipt through permitted expenditure to the unspent balance. General donations, corpus-related receipts, programme income and foreign contributions can raise different accounting and compliance questions.
We review the governing objects, registration orders, grant restrictions and trustee or governing-body decisions alongside the accounts. A programme cost shared between grants needs a documented allocation basis. A bank payment by itself does not demonstrate that a grant permitted the expenditure.
Where foreign contribution is involved, its accounts and reporting requirements need a separate assessment. Tax registration, FCRA permission and a donor’s approval each have their own conditions.
Evidence for the audit
Provide the trial balance and ledgers, bank reconciliations, prior accounts and reports, governing documents, approval orders, donor and grant records, activity evidence and governing-body minutes. Material assets, liabilities, related-party transactions and commitments also need support.
An incomplete record does not mean the organisation can skip an audit. We agree what must be completed, who will provide it and how the gap affects the timetable. Bookkeeping repair is identified separately from the auditor’s work.
During the auditor’s fieldwork, we gather the records requested, answer queries on selected transactions and balances, and track open points. Management considers proposed adjustments and supplies explanations. The auditor decides whether the evidence supports the conclusion; an unresolved material issue can affect the report.
What the audit delivers
The signed report comes from the auditor and covers the financial statements or prescribed particulars concerned; significant findings and proposed adjustments are discussed with those responsible for governance. From TheTaxCo. you receive the reconciled accounts and schedules, and support with the filing steps that follow.
Audit provides reasonable assurance within its applicable framework, not a guarantee that every error or fraud will be found. Independence, eligibility and management’s responsibility for records remain essential.
Reporting timetable
The schedule works back from the statutory, grant or governing-body reporting date. Planning can begin before year-end; final reporting depends on completed accounts, material evidence and authorised approvals.
Related services
Email TheTaxCo., message us on WhatsApp or book a call about the preparation work. Include the organisation’s legal form, financial year, reason for the audit and whether an auditor is already appointed.