HaysMac - NFP Audit Flashcards
(46 cards)
What does Integrity mean?
Putting the interests of others (e.g. client, company, society) above your own personal ones
What does collaboration mean?
Collaboration means open communication, sharing generously and acting in an inclusive manner.
What does empowerment mean?
Giving others the freedom to think creatively and feel confident in our expertise.
What does dynamism mean?
Having adaptability to find solutions in changing environments
Why Hays Mac?
- Opportunity to specialise early on + Expertise in NFP sector
- Emphasis on collaboration
- highly quality: 100% pass rate for external audits over last year
Outline HaysMac’s expertise in NFP sector
- work with over 100 independent schools
- global reach in sector
- demonstrates knowledge via its regular newsletters on sector e.g. Charity & NFP eNews, also Steve Harper’s International Charities Briefing, PIMBs briefing
What is unique about audit at HaysMac?
- Trainees specialise early on: gain deep expertise in particular area
- registered by FRC to audit PIEs
- highly quality: 100% pass rate for external audits over last year
- Use audit platform Inflo.
Why are you aligned with integrity?
- integrity is a key aspect of helping others, which is big motive for me
- STAR: forgot to input order at restaurant (apologised rather than hiding fact to customers).
- Link: profession depends on it.
Why are you aligned with collaboration?
- enjoy working within a team
- C: ran Phil soc with 3 friends
- A: common goal, learning each others roles, collaborating with members to ensure we provide events that they want
- R: best turnout in years.
Why are you aligned with empowerment?
- closely tied with collaboration (empowerment encourages collaboration, and vice versa)
- STAR: Phil Soc creating empowering environment for non philosophy students
- STAR: empowering new workers/volunteers to really understand where they’re struggling and help fill them in on their weaknesses, maybe play to their strengths in short-term.
Why are you aligned with dynamism?
- Enjoy problem-solving
- STAR: Restaurant (requires dynamism, fast paced)
What do you know about social purpose auditing?
- categories
- threshold
- regulation (e.g. SORP)
What is the threshold for a charity needing to be audited in England and Wales?
In England and Wales, an audit is required if either the charity’s gross income exceeds
£1 million or its gross assets exceed £3.26m and gross income exceeds £250,000.
What industries are contained within social purpose audit?
- charities
- professional institutes and membership bodies
- education
What issues is the NFP sector facing?
- ongoing cost of living crisis - reduction in donations
- inflation eording value of donations, but donors unlikely to increase their donations accordingly. NFPs cannot ‘raise prices’ like private sector’.
- New UK FRS102 (bringing it closer to IFRS) and SORP from 2026
- attracting and retaining talent (cannot compete wage wise) e.g. in financial leadership roles like CFOs (outsourcing the solution? hence practice)
What are PIMBs?
professional institutes and membership bodies e.g. PGMOL, ICAEW? - groups that seek to further a particular profession
What issues is the education sector facing?
- school: VAT on private school fees
- uni: crisis, fees indexed to inflation
Tell me about who auditors audit in education
schools, colleges, universities, multi-academy trusts
What did you learn from the Social Purpose eNews?
- consultation underway for new SORP (effective from 2026)
What did you learn about changes to new SORP?
- SORP underpinned by FRS 102
- changes to FRS 102 should be followed by charities
- charities should analyse lease commitments (removal of distinction between operating and finance leases in 102W)
What is FRS 102?
financial reporting standards followed by companies not using IFRS or FRS 101/105
Why audit?
What do you know about audit
What dy know about ACA?
