Non-profit – NBC Institute

AA – Nov 2023 – L2 – Q4 – Audit of Public Sector Entities

Identify inherent risks in a non-profit organization and assess control environment weaknesses impacting audit approach.

Question

Greater Tomorrow Foundation (GTF) was established with the aim of providing support to children from disadvantaged backgrounds who wish to participate in sports, such as tennis, athletics, and football. It has benefited the country, with some beneficiaries representing the nation in international competitions.

GTF has a constitution detailing how income can be spent and limits administrative expenditure to one-eighth of its income annually.

GTF’s income comes solely from voluntary donations, including:

Cash collected by volunteers from the public.
Direct donations from generous individuals.

Certain donations specify that the principal amount cannot be spent, with income generated (interest) allocated to specific activities, like providing sports equipment (e.g., footballs, boots, rackets, sportswear, etc.).

Required:

a. Explain FIVE areas of inherent risk in Greater Tomorrow Foundation (GTF) and explain the effect of each risk on the audit approach. (10 Marks)

b. Explain FIVE reasons why the control environment may be weak in GTF. (10 Marks)

Answer

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Tags: Audit Approach, Compliance, Control Environment, Donations, Financial Controls, Inherent Risk, Non-profit
Level: Level 2

Topic: Audit of Public Sector Entities

BMIS – May 2020 – L1 – Q1a – The business organisation and its stakeholders

Classify various entities into appropriate categories of organizations and justify the classification.

Question

Organisations can be categorised into the following types:

Business organisations
Public sector organisations
Non-government not-for-profit organisations.

Required:
To which category or categories of organisation do the following entities belong, and why?
i) A charity receiving 60% of its annual funding from central government.
ii) A basic school.
iii) State-owned Electricity Company.
(6 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business, Non-profit, Organization Types, Public Sector
Level: Level 1

Topic: The Business Organisation and its Stakeholders
Series: MAY 2020

AA – Nov 2023 – L2 – Q4 – Audit of Public Sector Entities

Identify inherent risks in a non-profit organization and assess control environment weaknesses impacting audit approach.

Question

GTF has a constitution detailing how income can be spent and limits administrative expenditure to one-eighth of its income annually.

GTF’s income comes solely from voluntary donations, including:

Cash collected by volunteers from the public.
Direct donations from generous individuals.

Required:

a. Explain FIVE areas of inherent risk in Greater Tomorrow Foundation (GTF) and explain the effect of each risk on the audit approach. (10 Marks)

b. Explain FIVE reasons why the control environment may be weak in GTF. (10 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Approach, Compliance, Control Environment, Donations, Financial Controls, Inherent Risk, Non-profit
Level: Level 2

Topic: Audit of Public Sector Entities

BMIS – May 2020 – L1 – Q1a – The business organisation and its stakeholders

Classify various entities into appropriate categories of organizations and justify the classification.

Question

Organisations can be categorised into the following types:

Business organisations
Public sector organisations
Non-government not-for-profit organisations.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business, Non-profit, Organization Types, Public Sector
Level: Level 1

Topic: The Business Organisation and its Stakeholders
Series: MAY 2020

Question Tag: Non-profit

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AA – Nov 2023 – L2 – Q4 – Audit of Public Sector Entities

Identify inherent risks in a non-profit organization and assess control environment weaknesses impacting audit approach.

BMIS – May 2020 – L1 – Q1a – The business organisation and its stakeholders

Classify various entities into appropriate categories of organizations and justify the classification.

AA – Nov 2023 – L2 – Q4 – Audit of Public Sector Entities

Identify inherent risks in a non-profit organization and assess control environment weaknesses impacting audit approach.

BMIS – May 2020 – L1 – Q1a – The business organisation and its stakeholders

Classify various entities into appropriate categories of organizations and justify the classification.

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AA – Nov 2023 – L2 – Q4 – Audit of Public Sector Entities

Identify inherent risks in a non-profit organization and assess control environment weaknesses impacting audit approach.

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BMIS – May 2020 – L1 – Q1a – The business organisation and its stakeholders

Classify various entities into appropriate categories of organizations and justify the classification.

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AA – Nov 2023 – L2 – Q4 – Audit of Public Sector Entities

Identify inherent risks in a non-profit organization and assess control environment weaknesses impacting audit approach.

You're reporting an error for "AA – Nov 2023 – L2 – Q4 – Audit of Public Sector Entities"

BMIS – May 2020 – L1 – Q1a – The business organisation and its stakeholders

Classify various entities into appropriate categories of organizations and justify the classification.

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