Not-for-profit organisation
A not-for-profit organisation pursues objectives other than distributing profits to owners, for example charitable or public-benefit purposes. Auditors consider its reporting framework, funding restrictions, governance and particular risks, such as completeness of donations.
Worked example
A charity receives a restricted grant; the auditor examines its conditions and evaluates accounting and disclosures.
Common mistake
Not-for-profit status does not mean an entity has no income, assets, reporting duties or audit risks.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AA | Supporting | September 2026–June 2027 |
| ACCA | APM | Direct | September 2026–June 2027 |
| ACCA | BT | Direct | September 2026–June 2027 |
| ACCA | FR | Direct | September 2026–June 2027 |
| ACCA | MA | Direct | September 2026–June 2027 |
| ACCA | PM | Direct | September 2026–June 2027 |
| ACCA | SBL | Direct | September 2026–June 2027 |
| FIA | FBT | Direct | September 2026–June 2027 |
| FIA | FMA | Direct | September 2026–June 2027 |