Sample financial audit

SAMPLE FINANCIAL AUDIT

Comptables Agréés

Chartered Accountants

1224 Green Street, Suite 504

Bellefeuille, Québec JOL 1P0

Leblond, Lebrun & Leblanc, C.A.

Audit Report
To the Directors of: (.... name of organization ....)
We have audited the report on the costs incurred in the (.... project title ....) project during the period from May 20, 2006 to September 20, 2007. The management of (.... name of organization ....) was responsible for the quality of this report. Our responsibility as auditors is limited to stating an opinion on the basis of our audit. Our audit was conducted in accordance with the conditions set out in the Contribution Agreement, signed on (.... date of signature ....) by (.... organization ....) and Environment Canada. Our audit was also conducted in accordance with generally accepted auditing principles. These standards require that the audit be planned and conducted so as to provide a reasonable degree of certainty that there are no major inaccuracies in this report on costs. The audit included a review of samples of documents supporting the amounts in question and other elements of information contained in this report. It also included an assessment of the accounting principles applied and important estimates made by management, as well as an assessment of the presentation of this report.

As is the case in many organizations of this kind, (.... name of organization ....) obtains some of its income in the form of gifts in cash, in kind or in voluntary labour, which cannot form the subject of a detailed audit. Consequently, our audit of the organization’s income from these sources was limited to a review of the deposits recorded in the books. In our opinion, with the exception of any adjustments that might have been required if we had been able to audit the income from gifts of any kinds whatsoever, this report faithfully reflects in every major respect the accumulated costs of the (.... project title ....) project during the period from May 20, 2006 to September 20, 2007 in accordance with generally accepted accounting principles.

Leblond, Lebrun & Leblanc, C.A

Bellefeuille, Québec

December 28, 2007

(.... NAME OF ORGANIZATION ....) Sample Financial Audit (continued…)
(.... PROJECT TITLE ....)
Report on Costs

Period from May 20, 2006 to September 20, 2007

Income

• Environmental Damages Fund (including 10% holdback receivable) $50,000

• Student Employment Assistance Program $7,800
• City of Bellefeuille $10,000
• Seniors for the Protection of the Environment (SPE) $2,000
• Bio-Vert Inc. $3,000
• Dubois and Daughters Construction Ltd. $2,000
• Contributions in kind (goods, services, voluntary labour) $10,200
Subtotal $85,000

Expenditures

• Wages and benefits $38,600

• Professional fees $8,520
• Purchase of materials $9,125
• Equipment rental $8,600
• Travel costs $700
• Office supplies $1,280
• Advertising and communications $1,825
• Miscellaneous expenses $6150
• Gifts in kind $10,200
Subtotal $85,000

Surplus $ 0

(.... NAME OF ORGANIZATION ....) Sample Financial Audit (continued…)

(.... PROJECT TITLE ....)
Report on Costs (continued)
Period from May 20, 2006 to September 20, 2007

Professional services $8,520

Human Resources $38,600
Equipment and Supplies $19,005
Miscellaneous Expenses $8,675
Total $74,800(1)
Approved by:

................................................................, Director

Note (1): Voluntary Contributions

Contributions by the organization and its partners to the project (.... project title ....) consisting of goods, services or voluntary labour are not recorded in the books and were not therefore audited. These amounts represent approximately $10,200 and may be broken down as follows:

Voluntary labour:

(.... Name of organization ....). $3,500
SPE $2,500
Gifts in kind (in the form of services):

City of Bellefeuille $2,300

Bio-Vert Inc. $1,500
Individuals $400
Total $10,200