The Korean Institute of Certified Public Accountants (KICPA) and the National Council of non-profit organisations (NPOs) have signed a memorandum of understanding (MoU) to strengthen accountability and transparency in not for profit organisations.

As part of the MoU both organisations will work together to establish standards for external reporting of not for profit organisations, they will look at how to strengthen external audit for the largest NPOs. They will also launch a research project into law and regulations for the NPO’s financial management and reporting.

KICPA president Joong-Kyung Choi said: “To improve the participation in charitable giving, it is important to maintaining the transparency in financial management. We tried to make a protection system against potential irregularity in not-for profit organizations.”