Conclusion
Not-for-profit organizations and public sector agencies face unique challenges when compared to
for-profit enterprises. These differences include goal ambiguity, conflict between constituents,
difficulty in measuring performance, heightened external scrutiny, and employee characteristics including compensation and competence. These challenges require the use of extensive controls
and performance measures to ensure resource allocation and operating results withstand public
scrutiny. Given the strong governing body overseeing the independence, objectivity, and quality
of CPA services, NFPOs and public sector agencies could greatly benefit from their third party
assurance and industry expertise in order to resolve the public’s concerns.
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