The following points need to be considered by an Auditor while conducting audit of

Charitable Institutions −
 He should know about the constitution and the legal status of Charitable
Institutions.
 An Auditor should study the Rules and Regulations of the State Government,
Central Government and other applicable law to such institutions.
 He should obtain a list of accounts, correspondence and all related documents
which are required for the purpose of audit.
 To know the detail which may affect important decisions of institutions,
Auditor should study the Minutes Book of Governing Body.
 Auditor should obtain list of members to verify the amount of subscriptions
and list of regular donors to know the nature and purpose of donation of
regular donors.
 Auditor should vouch the amount of subscription and donations from
counterfoils of receipts, members list, donation register and cash book, etc.
 He should ensure that the funds received for a specific purpose are being
utilized for the same purpose or not.
 He should verify nature of donation and accounting treatment of such
donations. Capital and revenue donations should be treated separately.
 He should study the state code to verify whether any grant is applicable to the
concerned institutions or not.
 He should verify the provisions for subscription due but not received.
Subscription receivable for last year whether received or not in the current year
should also be verified.
 Investments should be verified according to the rules of Institutions, whether
investments are in approved fund.
 Investments should be checked in the Investment register along with physical
verification.
 Income on investments in form of interest and dividends, etc. should be
vouched carefully.
 Title deed and other related documents of Land & Building should be verified.
 Legacies can be verified with receipts book and legacies register.
 An Auditor should verify assets and liabilities on institutions on the date of
Balance-sheet.
 He should verify the cash in hand and the cash at bank.
 All the related expenses should be vouched carefully according to general
auditing practices and principles.
(https://www.tutorialspoint.com/auditing/auditing_of_charitable_institutions.htm)