Final answer:
An incorporated not-for-profit organization is generally not mandated to have their financial statements audited. However, certain circumstances may require an audit based on specific regulations and funding requirements.
Step-by-step explanation:
An incorporated not-for-profit organization is generally not mandated to have their financial statements audited. However, certain circumstances may require an audit based on specific regulations and funding requirements. For example, if the organization receives government funding or has significant assets, an audit may be necessary to ensure transparency and accountability.
Non-profit organizations often rely on the trust and support of their donors and stakeholders. Having audited financial statements can enhance their credibility and provide assurance that the organization is managing its resources responsibly. Additionally, audits can help identify any financial irregularities or errors that need to be addressed.
Ultimately, the decision to have financial statements audited is typically made by the organization's board of directors or in compliance with legal and regulatory requirements.