Imagine you have been hired as the Client Services Director for Wal-Mart and have been charged with compiling a new set of customer service standards. (If you have already defined the organization as being customer-responsive, imagine you are devising the standards, which were originally used to create that excellent customer-responsive culture). Structure a set of customer service standards for the company, which encourage employees to provide the best customer service possible.
An audit is a process for testing the accuracy and completeness of information presented in an organization's financial statements. This testing process enables an independent certified public accountant (CPA) to issue what is referred to as an opinion on how fairly the agency's financial statements represent its financial position and whether they comply with generally accepted accounting principles (GAAP). GAAP is determined by the American Institute of Certified Public Accountants (AICPA). Board members, staff, and their relatives cannot perform audits because their relationship with the organization compromises their independence.(1)
The audit report is addressed to the board of directors as the trustees of the organization. The report usually includes the following:
A cover letter, signed by the auditor, stating the opinion, as described above.
The financial statements, including the statement of financial position (balance sheet), statement of financial activity (income statement), and statement of cash flows. Health and social service organizations also have a statement of functional expenses. Many audits show comparative information between fiscal years.
Notes to the financial statements, as required by GAAP, which might include information about functional expenses, a d ...