a. Planning Considerations:

1. Understanding the NFPO’s Objectives: Familiarize with Youthplus’s mission, goals, and operational environment to tailor the audit approach.
2. Regulatory Compliance: Ensure awareness of the legal and regulatory requirements applicable to NFPOs in Nigeria.
3. Stakeholder Expectations: Consider the interests of stakeholders, including donors, beneficiaries, and the board, in the planning process.
4. Resource Allocation: Assess the resources (time, personnel, and expertise) required to effectively conduct the audit.

b. Risk Considerations:

1. Funding Sources: Evaluate the risks associated with different funding sources (public, private, foreign) and their impact on financial reporting.
2. Fraud Risks: Identify potential areas of fraud risk, especially related to fund solicitation and allocation.
3. Operational Risks: Assess risks related to the NFPO’s operations, including program effectiveness and sustainability of initiatives.
4. Financial Management Risks: Evaluate the risks associated with financial management practices, including budgeting and cash flow management.

c. Internal Control Considerations:

1. Control Environment: Evaluate the overall control environment, including the tone set by management and the board regarding ethical practices.
2. Segregation of Duties: Assess whether there is an adequate segregation of duties in financial processes to prevent fraud and errors.
3. Fundraising Controls: Review controls related to fundraising activities to ensure proper handling and recording of funds raised.
4. Monitoring Controls: Evaluate the effectiveness of ongoing monitoring controls to ensure compliance with internal policies and procedures.

d. Audit Evidence Considerations:

1. Source of Evidence: Determine the reliability of evidence sources, including documentation from fundraising activities and grant applications.
2. Types of Evidence: Consider the types of evidence needed, including financial records, donor agreements, and expenditure reports.
3. Sampling Techniques: Decide on appropriate sampling techniques for transactions related to fund raising and program expenditures.
4. Verification of Impact: Assess the need for evidence regarding the impact of funded programs, which may require additional procedures.

e. Reporting Considerations:

1. Clear Communication: Ensure the audit report clearly communicates the findings and opinions in a way that is understandable to all stakeholders.
2. Compliance with Standards: Adhere to relevant auditing standards and guidelines specific to NFPOs in preparing the audit report.
3. Highlighting Key Issues: Address significant issues encountered during the audit, including any non-compliance with regulations or internal controls.
4. Recommendations: Provide constructive recommendations for improving financial management and operational effectiveness.