SECTION III (ANSWER ALL QUESTIONS) APPLICATION QUESTIONS (2 X 10 Mark =20Marks)

4. An NGO operating in Muscat had collected large scale donations for Makunu strom victims. The donations so collected were sent to dierent NGOs operating in Salalah for relief operations. This NGO operating in Muscat has appointed you to audit its accounts for the year in which it collected and remitted donations for Makunu storm victims.

a. What type of audit programme would you recommend in the above situation?

b. Draft (Specimen) audit programme for audit of receipts of donations and remittance of the collected amount to dierent NGOs.

c. Prepare detailed contents of audit programme for NGO operating in Muscat.

5. Discuss in details the application of accounting principles applied in preparation of the financial statement with suitable examples.