MOU Follow generally accepted Verify by reviewing annual financial Onsite 7.3.3 accounting principles and audit conducted by Public Accountant. practices, as well as the Verify by reviewing management letter Canadian Institute of that accompanies financial Chartered Accountants The reviewer will meet with the guidelines for Not for Profit accountant in person or via phone and accounting. discuss the annual audit process with questions such as: did the auditor meet with the ED, Board Chair and Treasurer, who provided all of the documents the auditor required, was the audit done on the premises or completely in the auditor’s own office? Post audit, before the production of final audited statements did the – auditor debrief with the ED, Board Chair and Treasurer? Did the auditor present the financial statements at the AGM? How many years did this company audit the MFRC? MOU Adequate segregation of Verify that the following practices are Onsite 7.3.3 duties. Management should in place and the following duties are follow acceptable guidelines segregated: for segregation of duties to cheques must be signed by two prevent and detect both authorized signing officers; intentional and unintentional source documents must be errors. attached to or presented with separation of the cheques at the time of custody of assets signature, initialed by those from accounting; signing the cheques and separation of the stamped to prevent “paid" authorization of double payment; transactions from the bank reconciliations must be custody of related completed by the Treasurer or assets; third party and must be approved by the ED;
MOU 7.3.3 Follow generally accepted accounting principles and practices, as well as the Canadian Institute of Chartered Accountants guidelines for Not for Profit accounting. Verify by reviewing annual financial audit conducted by Public Accountant. Verify by reviewing management letter that accompanies financial The reviewer will meet with the accountant in person or via phone and discuss the annual audit process with questions such as: did the auditor meet with the ED, Board Chair and Treasurer, who provided all of the documents the auditor required, was the audit done on the premises or completely in the auditor’s own office? Post audit, before the production of final audited statements – did the auditor debrief with the ED, Board Chair and Treasurer? Did the auditor present the financial statements at the AGM? How many years did this company audit the MFRC? Onsite MOU 7.3.3 Adequate segregation of duties. Management should follow acceptable guidelines for segregation of duties to prevent and detect both intentional and unintentional errors. separation of the custody of assets from accounting; separation of the authorization of transactions from the custody of related assets; Verify that the following practices are in place and the following duties are segregated: cheques must be signed by two authorized signing officers; source documents must be attached to or presented with cheques at the time of signature, initialed by those signing the cheques and stamped “paid" to prevent double payment; bank reconciliations must be completed by the Treasurer or third party and must be approved by the ED; Onsite
Compliance%20and%20Assurance%20Report%20TEMPLATE%20Jan%202014.docx