The Chengetai Vana Charity (a charity organisation) dedicated to helping disadvantaged children in Harare Central Province, asked for a review of controls over their receipts and expenses for year ending 2020. Soon after the financial audit have been completed a Forensic examiner was engaged to examine the system. During the examination of the director's expenses,the forensic examiner noticed that some personal expenses had been charged to the Foundation, including USD$3 000 for school books that were recently purchased for the director's children. The team expanded the review to an entire year and found evidence that car repairs, groceries, liquor, theatre tickets and a flight to Tanzania by the director and her family had been paid for by the Chengetai Vana Charity. The forensic accounting investigators showed the evidence to the Board Chairman and he was was puzzled .Required (a) Explain why the Board Chairman was puzzled by what the forensic examiner has discovered (10 marks) (b) Why should entities like Chengetai Vana Charity would engage forensic examiners instead of financial auditors? (15 marks)

Answer rating: 100% (QA)

a Reasons for the Board Chairmans puzzlement The Board Chairmans puzzlement likely stems from a combination of factors Misuse of funds The evidence pr... View the full answer