The Independent Audit for Nonprofits: Does it Make a Difference?

Scott Dell (), Meena Subedi (), Maxwell K. Hsu () and Ali Farazmand ()
Additional contact information
Scott Dell: Francis Marion University
Meena Subedi: University of Wisconsin -Whitewater
Maxwell K. Hsu: University of Wisconsin -Whitewater
Ali Farazmand: Florida Atlantic University

Public Organization Review, 2023, vol. 23, issue 4, No 8, 1437-1453

Abstract: Abstract Prior for-profit literature provides evidence that an independent audit of the financial reports is associated with a corporation’s improved investment efficiency and financial performance. In contrast, this study investigates the relationship between independent audits and financial performance in nonprofit organizations. Relying on prior studies, nonprofits that seek an independent audit are expected to have better oversight and higher financial reporting quality, and that improved oversight and reporting quality are associated with less fraud and higher quality decision makings. This study finds that that NPOs that seek independent audits enjoy better financial performance than NPOs that do not seek independent audits.

Keywords: Independent Audit; Financial Performance; Financial Solvency; Financial Vulnerability; Form 990 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s11115-022-00662-5 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:porgrv:v:23:y:2023:i:4:d:10.1007_s11115-022-00662-5

Ordering information: This journal article can be ordered from
http://www.springer. ... ce/journal/11115/PS2

DOI: 10.1007/s11115-022-00662-5

Access Statistics for this article

Public Organization Review is currently edited by Ali Farazmand

More articles in Public Organization Review from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().