ASSESSMENT OF ACCOUNTING PRACTICE AND ITS PROBLEMS ( IN THE CASE STUDY ETHIOPIAN RED CROSS SOCIETY IN WOLKITE BRANCH)

Abstract

This study assesses the accounting practices and challenges faced by the Ethiopian Red Cross Society (ERCS) in its Wolkite branch. Using a descriptive methodology, the research relied on structured questionnaires distributed among finance and administration staff to gather primary data. The scope of the study was limited to the Wolkite branch, addressing specific objectives such as evaluating current accounting practices, identifying problems, and exploring budget variances. Findings revealed significant issues, including reliance on manual accounting systems, lack of standardization in asset valuation, and challenges in donor dependency and reporting transparency. The study concludes that while the organization demonstrates progress in financial management, gaps in compliance with international standards and reliance on external funding hinder its sustainability. Recommendations include adopting FASB/IASB standards, establishing income-generating projects to reduce donor dependency, automating systems, and providing staff training to strengthen financial governance.