TG is a charitable organization that was founded in 1997 by two Jamaican Athletes. The following are
Question:
TG is a charitable organization that was founded in 1997 by two Jamaican Athletes.
The following are the main sources of funding for the organization: -
- Donations from the public, which is mainly in the form of cash collected at Supermarkets.
- Cheques are sent in through the post to the charity's head office.
- Direct transfers via RTGS and ACH by wealthy individuals occasionally, sometimes on the condition that the money is used for a specific purpose. The constitution of the charity specifies the purpose of the charity and states that no more than 10% of the charity's income each year may be spent on administration costs.
Required
The auditors in auditing the financial statements have a concern in relation to inherent risk.
Identify the inherent risks that the auditors would need to consider.
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain