Jordan Set Up a Not-For-Profit Corporation Several Years Ago to Provide

question 20

Essay

Jordan set up a not-for-profit corporation several years ago to provide scholarships to disadvantaged youth in his community.Scholarships Get Up and Go Foundation now has assets of over $5 million and provides about ten university scholarships every year.Jordan is proud of the new doctors,dentists,and other healthcare practitioners that his foundation has funded.
Jordan is thinking of starting another foundation in an old building that he has purchased.It would be a youth drop-in centre offering music lessons,art facilities,and gym facilities,and would have links to local high schools to offer homework clubs to encourage good grades.
Required:A)Why should Jordan have the financial statements of both of these foundations audited? B)Who would be the users of the financial statements of the foundations? C)What other types of services could PAs provide to Jordan and the foundations?

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Definitions:

Condition Precedent

A condition or event that must occur before a contract or a specific provision within a contract becomes effective or enforceable.

Illusory Promise

A statement or promise that is misleading or lacks the necessary intent to be legally enforceable.

Statutes Of Limitations

Laws that set the maximum time after an event within which legal proceedings may be initiated.

Law Of Repudiation

The legal doctrine concerning the refusal of a party to honor a contract, which can result in the contract being voided and possible damages awarded for breach of contract.