Global Scientific and Academic Research Journal of Economics, Business and Management ISSN: 2583-5645 (Online) *Corresponding Author Prof. Dr. Desire S. Luamba. © Copyright 2022 GSAR Publishers All Rights Reserved This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. Page 86 Global Scientific and Academic Research Journal of Economics, Business and Management ISSN: 2583-5645 (Online) Frequency: Monthly Published By GSAR Publishers Journal Homepage Link- https://gsarpublishers.com/journals-gsarjebm-home/ The Impacts of Audit Transparency on Increasing Trust in Nonprofit Organizations BY Prof. Dr. Desire S. Luamba 1* , Prof. Dr. Joel Chagadama 2 , Prof. Dr. Marvin L. J. Blye 3 , Prof. Dr. Edouard M. Mutamba, PhD 4 , Dr. Kevin C. James 5 1 DBA-Finance, Star Light Consulting LLC, Manassas, VA-USA https://orcid.org/0000-0001-5138-1550 2 DBA-Finance, President, Start Light Consulting LLC, Manassas, VA-USA https://orcid.org/0000-0002-7253-6977 3 DBA-Accounting, Department of Transportation Development, City of Baltimore, MD-USA https://orcid.org/0000- 0003-4029-0033 4 Department of Metallurgy, Faculty of Polytechnic, University of Lubumbashi, D.R. of Congo 5 DBA-International Business Management, L3Harris Technologies, Broadband Communications Systems, Melbourne FL-USA Abstract This study explores the role of audit transparency in improving satisfaction among stakeholders in nonprofit organizations. Audit transparency has relieved a loss of at least $40 billion annually in nonprofit organizations. Evidence or full disclosure of audits has significantly contributed to increasing transparency and reach performance in nonprofit organizations. Nonprofit managers and leaders need to explore audit effectiveness to prevent misconduct behaviors and ensure sustainability. Using Wallace's auditing theory, we found a statistically significant relationship between audit transparency, number of auditors, frequency of audit meetings, number of audit recommendations, and auditors' skills and expertise. As all independent variables align with the dependent variable audit transparency, auditors' skills and expertise have a substantial impact in predicting audit transparency. One of the biggest strengths of audit transparency is to increase trust among shareholders, which comprise employers, employees, and organization partners. The findings are helpful for lawmakers, government officials, board members, auditors, investors, financial advisors, and academic researchers to better understand the impacts of audits' full disclosure on increasing trust in nonprofit organizations. Keywords: Audit effectiveness, Shareholder satisfaction, Nonprofit organizations 1. INTRODUCTION Effective audit works and reports promote transparency in financial reporting and increase investors' motivation [1]. To achieve success, nonprofit managers or leaders need to understand the role of audits and their impacts on internal and external organizational factors [2]. As stated by Couturier [2], audits or controls in organizations should guide managers or leaders in making short and long-term planning decisions. Moreover, stakeholders, including employees, employers, donors, and government agencies, are interested in knowing how the organization is managed from the inside and outside. To meet their goals, nonprofit managers should increase trust among all individuals involved in organization activities to align with the mission and vision of the organization. Implementing audit works may increase trust and transparency and provide durable solutions to meet short- or long-term goals [3]. Analyzing the impacts of audit works in nonprofit organizations could also help all stakeholders to align with the organization's goals and meet customer satisfaction. Moreover, donors or grantors, who are the primary sources of nonprofit organization funding, want to ensure their donations which are the primary source of income, are used as required by the organization and government policies. 2. BACKGROUND Every day, week, month, and year audit works reveal many misconducts business practices which have become a big concern for top nonprofit organization managers and donors to respond positively to their client's demands [3]. Zakaria et al. [4] argued that the role of audit is crucial in detecting misconduct practices such as fraud. Fraud can damage the company's reputation or devastate the entire organization's Article History Received: 25/12/2022 Accepted: 29/12/2022 Published: 30/12/2022 Vol – 1 Issue – 2 PP: -86-96