before we talk about third sector audit It is important to remember that it is made up of companies that carry out philanthropic activities, providing society with an improvement in quality of life, medical care, access to cultural events and educational campaigns, also contributing to social inclusion. It is made up of institutions that, despite producing and selling goods and services, are not governmental and do not seek profit, but rather the development and social well-being.
Due to their characteristics, it is precisely for them that it is important to third sector audit, as they need to be transparent and reliable before society and government, so that they can achieve new investments and consequently reach a greater number of people.
The Federal Accounting Council, through the Brazilian Accounting Standards, defined the NBC T 10.19.1.3 standard, which says that a non-profit entity is one in which the positive result is not destined to shareholders and the profit or loss are called, respectively, surplus or deficit. According to NBC T 10.19.1.4, they carry out assistance, health, educational, religious, cultural, sports, charitable, social, class council activities, among others, managing people, things and interests around a patrimony for the purpose of common or community. The institution can also produce and sell products and services, but the revenue and surplus achieved must be fully invested in the maintenance and improvement of the institution itself.
And it is in this aspect that the third sector audit emerges with a relevant role in the demonstration of the work carried out by these companies, as it will verify and validate the facts and the destination of the collected resources. Unfortunately, many third sector organizations get involved in fraudulent schemes, running away from the main objective of their existence and purpose, passing a negative image to a large part of society. In addition, these organizations have a series of benefits due to the form of their constitution and objectives, and they need to clearly demonstrate their activities in order to continue enjoying these benefits.
The financial statements of third sector companies must follow the principles of Law 6.404/1976, with only a few changes in the nomenclature of some equity and income statements. They must prepare their financial statements, in accordance with the Brazilian Accounting Standards, therefore, they are required to publish the accounting statements, validated by the third sector audit, making it possible to identify the origin of resources and their correct application, providing greater reliability.
That is why third sector audit plays a relevant role, as it will clearly and accurately demonstrate the facts and operational activities of the entities that make up this important sector. Volunteers, donors, partners and the government expect the resources allocated to be effectively used for their primary purpose, so transparency is vital in these organizations.
A TATICCA – ALLINIAL GLOBAL also provides integrated auditing, accounting, tax, corporate finance, financial advisory, risk advisory, technology, business consulting and training services. For more information, access www.taticca.com.br or e-mail taticca@taticca.com.br. Our company has professionals with extensive experience in the market and has certified methodologies for carrying out activities.