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. 

Answer rating: 100% (QA)

Based on the information provided the following are some inherent risks that the auditors would need ... View the full answer