1. Identify and briefly describe fundamental and cost-effective internal controls that charitable organizations could implement to reduce their ezpusure to theft losses.

2. Do CPA firms have a responsibility to perform audits of charitable organizations for reduced or lower-than-normal audit fees? Defend your answer. Other than audit fees, what other benefits do accounting firms accure by auditing a charity?

3. Identify unuque or uncommon audit risk factors posed by a charity. How should accounting firms modify their audits to address these risk factors?