NGO Audit

NGOs are accountable to donors, beneficiaries and regulators. A well-conducted audit confirms that funds have been used for the stated purposes, keeps tax exemptions secure and builds confidence with donors. We audit trusts, societies and Section 8 companies of all sizes.

Forms of NGO We Audit

• Public charitable and religious trusts
• Societies registered under central or state laws
• Section 8 companies
• FCRA-registered organisations
• CSR implementing agencies

Types of NGO Audits

• Statutory audit under the governing law, such as the Companies Act for Section 8 companies or state trust and society laws
• Income tax audit for trusts and institutions claiming exemption, with the audit report in the prescribed form filed before the return
• FCRA audit of foreign contribution accounts, required for the annual FC-4 return
• Donor and grant audits as required by funding agreements and CSR contributors
• Internal audit to strengthen controls, procurement and fund utilisation

Our Audit Procedure

1. Understand the NGO's objectives, funding sources and internal controls
2. Review registrations, governing documents and compliance status
3. Verify receipts, donations, grants and their restrictions
4. Examine expenditure for genuineness and alignment with objectives
5. Check application of income, accumulation and investment rules under income tax law
6. Review fixed assets, bank reconciliations and separate FCRA accounts
7. Issue the audit report with observations and recommendations

Benefits of an NGO Audit

• Keeps income tax exemption and 80G status secure
• Builds donor and CSR partner confidence
• Ensures FCRA compliance and prevents suspension of registration
• Detects errors, leakage and control weaknesses
• Supports grant applications with credible financial records

Frequently Asked Questions

Is an audit mandatory for every NGO?

Trusts and institutions claiming exemption must get their accounts audited when total income before exemption exceeds the basic exemption limit. Section 8 companies always require a statutory audit, and FCRA accounts must be audited every year.

What is the due date for the income tax audit report of a trust?

The audit report must be filed at least one month before the due date of the income tax return, as notified for the relevant year.

Do FCRA funds need a separate audit?

Yes. Foreign contribution accounts must be audited separately and the audited statements attached to the annual return in Form FC-4.