EVALUATING ACCOUNTING PRACTICE AND PROCEDURE IN NON GOVERNMENTAL NOT FOR PROFIT ORANIZATION IN THE CASE STUDY OF RED CROSS SOCIETY IN WOLKITE TOWN

Abstract

The research was conducted evaluating accounting practice and procedure einnon government not for profit organization in case of Red Cross society in wolkite town.The object of this study to evaluate the accounting practice and procedure hat the organization use an effective the accounting system and main problem related with the accounting systems tin the organization and the problem In financial center. Specific objective of the study first to evaluate accounting system of the organization is accordance with GASB or not ,to evaluate how financial information is analyzed and report to donors and other stake holder when requested ,to evaluate the accounting record form of register where designed by red cross society in Wolkite branch ,to examine the accounting practice of the organization in accordance with FASB. The research design of the study would be descriptive in nature. For obtaining information regardingtheaccountingsystemtheorganizationtheresearchersusedbothprimary and secondary data. Primary data are gathered by questionnaires and interview, secondary data are gathered by referring to the organization manual and document was used. The researcher used Judgmental sampling techniques from nonprobability sampling techniques; since total employee of the organization are only 19 employees among this 4 selected and participate in the survey. Fifteen questionnaires have been distributed. Those all questionnaires are success. The organization employees have a clear understanding of accounting practice and financial report covers all funds and its financial transactions. The internal control mechanisms of the organization are very weak to minims or detect corruption, fraud and errors. So the organization should be uses different control mechanism