Assignment: Internet-based Exercise

The audited financial statements for FY 2012 can be obtained from www.redcross.org and www.diabetes.org. The Consolidated Financial Statements are available on the website.

Forms 990 - 2012 are attached in *.pdf format

Review Consolidated Financial Statement and Form 990 of both organization before answering.

1. (a) What were the standards applied in conducting the audit? (b) Was the audit a Single Audit? (c)How do you know? (d) What reports resulted from a single audit?

NOTE:Answer can be obtained from the auditor's report:

Ex: American Red Cross; audit was conducted in accordance with generally accepted auditing standards (GAAS).

American Diabetes Association: consolidated financial statements: the audit is conducted in accordance with generally accepted auditing standards (GAAS) in the USA.

2. (a) Identify the Federal Agencies (HINT:agencies are unusually tilted U.S. Department of...) that have extended grants to these organization. (b) Are these the agencies that you would expect? (c) Why or Why not?

NOTE:The Single Audit Report on the Schedule of Expenditures will provide the information on the grants from the Federal agencies.

3. For the fiscal year 2011, identify (a) any significant deficiencies or material weakness in the organization's internal controls over major programs, (b) any instances or noncompliance in major programs, and (c) any finding or questioned costs.

NOTE:The four Single Audit Reports for each organization will be the basis for the answer to this question.

https://www.dropbox.com/s/c5x9543dknbcz3w/Attachments.rar?dl=0