ACCOUNTING AND AUDITING PRACTICES IN NONGOVERNMENTAL ORGANIZATIONS: EVIDENCE FROM FIJI

This paper examines the accounting and auditing practices in non-governmental organizations. It seeks to understand accounting processes and reporting practices in non-governmental organizations. Nongovernmental organizations have become important institutions in world affairs but accounting research has not developed significant interest in their operations and accounting practices. We use content analysis on the annual reports of 20 non-governmental organizations operating in Fiji. The results show variations in the accounting and auditing practices of the non-governmental organizations. Further analysis indicates that a number of factors influence the accounting and auditing practices of nongovernmental organizations. Our analysis shows that financial reporting practices are in part shaped by the requirements of donor agencies and influence of specific stakeholder groups. We also find that the need to legitimize their operations also influences the accounting and auditing practices of nongovernmental organizations. This paper contributes to the limited empirical research on the accounting and auditing practices of non-governmental organizations in developing markets.