Finance Standard # 5: auditing

Audit gives us an objective verification that our accounting gives a fair and honest view of our organization and that our financial and legal process fulfill standards and satisfaction in our operations.

This standard helps you with criteria which external or internal audit needs to fulfill. 



> Unqualified External Audit - For: MC

How often: Once per year, storage documents from audit at least for 5 years

An external audit must be conducted every year to ensure proper financial management and minimize the potential for any risks to the AIESEC entity and AIESEC internationally. A licensed external auditor must conduct the audit and the auditor’s report must be unqualified.

> Financial Internal Audit - For: MCs and LCs.

How often: Once for MC and at least twice for LCs per year

The auditor ensure that financial statements are being accomplished in each product. The following financial principles must be measured: Accountability, Financial Reportability, Financial Model.

Accountability and Financial Reportability must be measured for its existence, evaluation, accuracy and completeness.

Financial Model must be measured for its validity and implementation. There points are evaluated: 
 - Pricing (considering in which stage of the Costumer Flow entity must be charging), 
 - Budget, 
 - Financial Funds, 
 - Incomes and costs for each product, 
 - Sponsorships contracts,  
 - Conferences, HR Costs, 
 - Taxes
 - Reimbursements.

> Legal Internal Auditing - For: MCs and LCs.

How often: Once for MC and at least twice for LCs per year

To make sure legal documents are implemented in for all products, such as contracts and acceptance notes, and that these documents are according to country and AIESEC's legislation. Addiotionally, it must measure if all legal documents are signed by the person who was the right to sign them in the entity and also that these documents are being stored.


Internal audit tool

Check twice, act once! That's a very well-known quote. Definitely, it is worth to check if all processes are accurate and where any issues can arise. Internal audit will prepare you for your external audit, increase your transparency and help you manage risks effectively. 

Content: INTERNAL AUDIT TOOL I ppt I Tutorials

Risk management framework

Even the future is uncertain, there are some tools how to deal with it. Check our risk management framework and end your nights without sleep from the fear of future!



External audit

External audit is the final exam each entity needs to pass in accounting to keep not only membership status, but also to sustain the legal reputation. Therefore be prepare for it. 

CONTENT: booklet