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Israeli Nonprofit Organizations and an In-Depth Audit in Israel

Joshua Pex
Joshua Pex

Sergei m Vashkevich

We came to Mr. Joshua with so many questions (and most of all, with so many concerns and worries) …

When we explained our case to him, first of all, he calmed us down and helped us to see the big picture, which took away our fears;

Then he presented us with a detailed explanation and a few options to explore, and a timeline, how things work and necessary steps to undertake on our part,

We thank and highly recommend Mr. Joshua for showing us so much empathy, care and professionalism (!)

This article provides some information on an in-depth audit in Israel. The Israeli Registrar of Amutot engages in 500 to 1000 in-depth audits of various Israeli nonprofit organizations (an amutah in singular and amutot in plural) annually.

This Series of Posts

We are an Israeli law firm with experience in a variety of fields, including Israeli nonprofit law.  This article is one in a series discussing what you need to know about nonprofits or charitable organizations in Israel.  This series provides information on various rules for the legal management of nonprofit organizations in Israel in order to better help you administer your Israeli nonprofit organization.

For more information on the Israeli Corporations Authority which oversees Israeli nonprofit organizations, see the government website.  For more articles from an Israeli lawyer and legal advice for Israeli nonprofit organizations related to the topic of this article, see our articles about record keeping, financial statements and the Audit Committee.


in-depth audit in Israel

As part of its responsibilities to oversee Israeli nonprofit organizations, the Israeli Registrar of Amutot actively engages in numerous audits of various organizations to ensure that these Israeli nonprofit organizations are fulfilling their legal obligations and registered objectives.


The Process of the In-Depth Audit in Israel

The Registrar of Amutot hires accounting firms to assist it in its in-depth audits of various Israeli nonprofit organizations.  The accounting firm’s auditor sends their findings to the Registrar of Amutot.  The Israeli nonprofit organization being audited receives a draft of the findings as well.

If there are outstanding issues indicating that the Israeli nonprofit organization has not been fulfilling its obligations, the Registrar of Amutot can respond in various ways.  These responses range from: removing the amutah’s certificate of proper management, giving a period of time to rectify various problems that need to be addressed, referring the organization to a recovery program or shutting down the organization.  In the event that the auditor finds that the Israeli nonprofit organization is violating a law, the Registrar of Amutot would forward the audit report to the relevant party in government to address it further.

Compliance with the In-Depth Audit in Israel

In the event that an Israeli nonprofit organization is being audited by an accounting firm on behalf of the Registrar of Amutot, the Israeli nonprofit organization must supply all necessary documents and answer the auditor’s questions.  If an organization fails to comply with the audit process, it can lose its certificate of proper management or may not receive one in the future.

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If you have any questions about the process of an in-depth audit in Israel or Israeli nonprofit organizations in general, please contact us.

Advocate Joshua Pex specializes in Israeli nonprofit law and would be happy to discuss the needs of your nonprofit organization with you.


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