A lot of NPOs are run by volunteers who have no accounting knowledge, so while they may have wanted some assistance with their financials they didn’t know what an audit entailed or that it is not needed for their purposes. The auditor it appears took advantage of this and locked them into a three year expensive contract they do not have the money for as they did not realize they could not use their restricted funding to pay for the audit.

I believe it is unethical to take advantage of npo organizations who are just looking for help and trapping them in contracts they don’t need. It seems to go against our ethical standards we have to follow as designated accountants but I’m wondering if there is any source material to support this.