Non-Governmental Organizations (NGOs) and charities in Malaysia are subject to unique audit requirements due to their funding structures and public accountability. Although these entities may not operate for profit, they handle significant public or donor funds and must maintain financial transparency.
Registered NGOs are often required by law—or as a condition of grant funding—to produce audited financial statements annually. These audits must be conducted by licensed auditors and comply with standards such as the Malaysian Financial Reporting Standards (MFRS) or applicable simplified frameworks for non-profits.
Key audit focuses for NGOs and charities include:
- Proper use of funds: Ensuring donations and grants are used for their intended purposes.
- Compliance: Adherence to the Societies Act 1966 or relevant trust deeds.
- Governance: Reviewing internal controls, segregation of duties, and board oversight.
- Transparency: Providing clear and accurate financial statements for public and donor scrutiny.
At Jamal, Amin & Partners, we understand the sensitivities and expectations involved in NGO audits. We help organizations maintain accountability, build donor confidence, and ensure sustainable operations through transparent financial practices.