Family Outreach APU

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Review the case study instructions in Week 2 . Then , create an outline for the case study due in Week 4 . The outline must contain the thesis statement which is the last 1 - 3 sentences of the introduction . The outline must also contain : An introduction with thesis statement . At least 5 body paragraphs specifically addressing the case study questions . A conclusion . A reference page with a minimum of 3 scholarly references . The paper must be formatted according to APA style . You must use at least 2 scholarly resources other than the textbook to support your claims . Case 4-7 Family Outreach Yimei was a senior state auditor in Michigan and licensed CPA . She has been assigned the audit of Family Outreach ( FO ), a non-profit social services organization that helps about 32,000 families a year with child-raising and child-development issues , especially those considered “ atrisk ” families . The organization holds workshops and programs for parents , teachers and childcare providers . The organization has an annual budget of $ 3.1 million . FO employs about 30 employees and receives funds from a variety of private , city , state , and federal grants . Yimei was in charge of the audit of FO for the city , state , and federal grants for 2013 . She reports to Kwami , her supervisor in the Michigan state auditor ’ s office . In reviewing the audit papers so far , Yimei noticed that $ 200,000 appeared in three expense accounts she never had seen before on the books of a non-profit : parent reimbursements ; entertainment expenses ; and reconciling costs . Together , the $ 200,000 was a material amount . Questions 1 . If you were Yimei , what ethical concerns would exist for you upon discovering the three accounts ? What is the first thing you would do upon discovering the three accounts ? 2 . Assume that FO provides invoices to justify the amounts in each account . You review the documentation and notice that each one has the same font , font size , and exact format . Being a skeptical auditor , you are suspicious about the validity of the audit evidence . What are your ethical and professional responsibilities given the questionable nature of the audit evidence and your role as the lead auditor ? 3 . We discussed the issues of accountability and transparency with respect to corporate governance in Chapter 3 . In the public sector , the chief investigative office is the Inspector General ( IG ) who is accountable to the taxpayers . IG ’ s are supposed to detect and prevent waste , fraud and abuse and thereby build trust in government . What would you do if you were Yimei and were told by Kwami to drop the matter because the chief operating officer of FO is the sister of the IG ? Do you have any whistle-blowing obligations in this matter ? Optional Question 4 . Review the accountancy law and rules of conduct in your state , and discuss Yimei ’ s ethical responsibilities with respect to the facts of this case .