Charities – NBC Institute

AAA – May 2017 – L3 – Q2 – Risk Management in Audits

Describe audit risk and its components, and identify inherent risks in auditing a charity.

Question

Home Care is a charity that provides accommodation for unemployed young people.
The constitution of the charity explains how the charity’s income could be spent and also contains a requirement that administrative expenditure cannot exceed 10% of income in any year.

The charity’s income is mainly derived from voluntary cash donations collected by volunteers from members of the public. Recently, the charity’s income has been impacted by the current global economic and financial meltdown.

Required:

a. Describe the term ‘audit risk’ and explain the THREE elements of risk that contribute to total audit risk. (8 Marks)

b. Using the information provided in the question, identify FOUR areas of inherent risk to be taken into account in planning the audit of Home Care and explain the effect of each of these risks on the audit approach. (12 Marks)

Answer

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Tags: Audit Planning, Audit Risk, Charities, Inherent Risk, Risk Assessment
Level: Level 3

Topic: Risk Management in Audits

FA – May 2017 – L1 – SA – Q16 – Partnership Accounts

Identifies which types of entities exist primarily to generate profit.

Question

Which of the following exists primarily for the purpose of making profit?
A. Charities
B. Clubs
C. General hospitals
D. Government bodies
E. Partnerships

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business Entities, Charities, Partnerships, Profit-Seeking
Level: Level 1

Topic: Partnership Accounts (Including Profit Sharing, Capital and Current Accounts)
Series: MAY 2017

AAA – May 2017 – L3 – Q2 – Risk Management in Audits

Describe audit risk and its components, and identify inherent risks in auditing a charity.

Question

Required:

a. Describe the term ‘audit risk’ and explain the THREE elements of risk that contribute to total audit risk. (8 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Planning, Audit Risk, Charities, Inherent Risk, Risk Assessment
Level: Level 3

Topic: Risk Management in Audits

FA – May 2017 – L1 – SA – Q16 – Partnership Accounts

Identifies which types of entities exist primarily to generate profit.

Question

Which of the following exists primarily for the purpose of making profit?
A. Charities
B. Clubs
C. General hospitals
D. Government bodies
E. Partnerships

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business Entities, Charities, Partnerships, Profit-Seeking
Level: Level 1

Topic: Partnership Accounts (Including Profit Sharing, Capital and Current Accounts)
Series: MAY 2017

Question Tag: Charities

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AAA – May 2017 – L3 – Q2 – Risk Management in Audits

Describe audit risk and its components, and identify inherent risks in auditing a charity.

Required:

FA – May 2017 – L1 – SA – Q16 – Partnership Accounts

Identifies which types of entities exist primarily to generate profit.

AAA – May 2017 – L3 – Q2 – Risk Management in Audits

Describe audit risk and its components, and identify inherent risks in auditing a charity.

Required:

FA – May 2017 – L1 – SA – Q16 – Partnership Accounts

Identifies which types of entities exist primarily to generate profit.

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AAA – May 2017 – L3 – Q2 – Risk Management in Audits

Describe audit risk and its components, and identify inherent risks in auditing a charity.

Required:

You're reporting an error for "AAA – May 2017 – L3 – Q2 – Risk Management in Audits"

FA – May 2017 – L1 – SA – Q16 – Partnership Accounts

Identifies which types of entities exist primarily to generate profit.

You're reporting an error for "FA – May 2017 – L1 – SA – Q16 – Partnership Accounts"

AAA – May 2017 – L3 – Q2 – Risk Management in Audits

Describe audit risk and its components, and identify inherent risks in auditing a charity.

Required:

You're reporting an error for "AAA – May 2017 – L3 – Q2 – Risk Management in Audits"

FA – May 2017 – L1 – SA – Q16 – Partnership Accounts

Identifies which types of entities exist primarily to generate profit.

You're reporting an error for "FA – May 2017 – L1 – SA – Q16 – Partnership Accounts"

Our offerings

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Customer

Get In Touch

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