You Have Been Assigned as the In-Charge Auditor for a New

question 78

Essay

You have been assigned as the in-charge auditor for a new client,Beltair House.Beltair House is a non-profit charitable organization that operates a women's shelter.In the past,the organization had been almost fully funded by the provincial government.However,due to recent government budget cuts,Beltair now has to raise operating funds from public donations.
Because of financial constraints,there is now only one full-time manager,Joan Ng.Joan has the help of several volunteers.The shelter residents also help out with the chores and with maintenance and cleaning.Ng has been able to arrange for a local food bank to provide a large portion of the food required for meals.Door-to-door canvassers have been able to raise money to keep the House going,but Ng is concerned that this will change.
Required:
Identify issues that affect the risk of this audit engagement that you will need to consider.

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Definitions:

Primary Standards

Basic, fundamental benchmarks or criteria that serve as the minimum requirements in various fields, including environmental protection and product quality.

National Ambient Air Quality Standards

Levels of air quality deemed safe for the public and environment, established by regulatory agencies to limit pollutants.

Public Welfare

Refers to government programs aimed at ensuring the basic physical and material well-being of its citizens.

Adverse Effect

A negative impact or harm that may be caused to one party due to the actions or conditions impacting another party or contract.