Regina Company Case

In: Business and Management

Submitted By lilyoriental
Words 626
Pages 3
Case 3.3
1. First, every organization should have procedures to monitor and record assets received, held and expended. Ensuring that grants and contributions received are properly recorded, accountings required as a condition of any grant are completed and restrictions on the use of such funds, such as contributions given for a restricted purpose and prohibitions on the use of the principal of an endowment, are obeyed.
Second, the accounting responsibilities should be segregated so that no single individual is responsible for receiving, recording and depositing funds or writing and signing checks.
Third, the organization should do requisitioning, authorizing, verifying, recording and monitoring all expenditures.

2. I think CPA firms generally don’t have the responsibility to audit charitable organizations at a reduced cost because it is the organizations responsibilities to set up an audit committee if necessary to seek and evaluate the organization’s financial accountability. Moreover, charitable organizations should design an active and efficient internal control system to manage its financial activities. However, if CPA firms could do this within the cost constrain, then it could help build the CPA firm’s public image, which is somehow a kind of intangible asset to the firm.

3. Due to the scope and nature of charitable organizations, most of the revenue is generated through donations from an outside party to be freely used or allocated to specific projects; the donors have the authority to inspect the operations and use of fund anytime. Hence, a proper accountability and internal controls must be at place. Also, proper and budgeted expense limitation plays a vital role, especially because the level of revenue is periodical and often time’s unpredictable.

Case 3.5
1.1) Segregation of duties between members that initiative, approve, implement, and…...

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