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Sample Essay

A governmental agency or an entity is a government owned business that is run as well as administrated by the government. The GAAP based accounting policies and procedures provide similar accounting procedures and financial statement regulations for government entities and related businesses.

The problem statement that is being targeted in this research paper pertains to the question ‘Why Not-for-profits and government entities must be audited’. The need for auditing these businesses is highlighted along with policies and procedures that are provided by the GAAP accounting principles when it comes to accounting and auditing Not-for-profits and government entities. Auditing is a requirement set forth by the FASB and the accounting regulatory board. The GAAP principles highlight that all businesses need to be audited on a periodic basis by an external party top assess the conformation of accounting and book keeping to the set GAAP regulations.

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