Access the website of the American Red Cross (www.redcross.com) and the American Diabetes Association (www.diabetes.org) and obtain the audited financial statements and Form 990 for the latest fiscal years available. Form 990 can also be obtained from www.GuideStar.org. Answer the following questions for each organization.
1. What standards were applied in conducting the audit? Was the audit a Single Audit? How do you know? What reports result from single audit?
2. Identify the federal agencies (Hint: agencies are usually titled U.S. Department of . . .) that have extended grants to these organizations. Are these the agencies that you would expect? Why or why not?
3. Identify (1) any significant deficiencies or material weaknesses in the organization's internal controls over major programs, (2) any instances of noncompliance in major programs, and (3) any findings or questioned costs.