You have been appointed the auditor of DOGGIESCATTIES HAVEN which has a year-end of 31st May, DOGGIESCATTIES HAVEN is a small registered charity based in a small town in Georgetown. The organization provides shelter for abandoned dogs and cats with the aim of finding new homes for as many as possible. The charity is managed by a voluntary committee, including a Chairman (Alan Chong), a treasurer (Prakash Sindhu) and a secretary (Maisarah Hamzah). Appointment is by annual election by the committee each year. However, Alan, Prakash and Maisarah have held their posts for a number of years as other committee members feel unable to give the required time commitment. DOGGIESCATTIES HAVEN also employs a number of paid employees. The shelter is managed by Brandon and Sofia Jane, who are husband and wife. There is a maid and a part time bookkeeper. In addition, a number of unpaid volunteers help out at the shelter ad and when they are needed depending on the number of animals at the center at a particular point in time. The main sources of income are as follows: a) Charity shop: This is run by a full time manager, assisted by a team of volunteers. Members of the public make donation (primarily clothes and toys) which are then sold during dog and cat show. All transactions are in cash. The show does not accept cheques or credit cards. The transactions are recorded by the till, with completed till rolls being passed on to the bookkeeper. b) Collections: Volunteers make house to house calls on a regular basis. In addition, on Saturday mornings, volunteers make collections in three town centers. All cash is counted by the volunteers and returned to the bookkeeper with a receipt confirming the amount. c) Dog and cat show Each year on 1st June, a Friendship Festival is held in the town. As part of this event. DOGGIESCATTIES HAVEN organize a dog and cat show. Any member of the public can enter their dog and cat by completing an entry form which can be obtained from the shelter home. d) Sponsorship DOGGIESCATTIES HAVEN is sponsored by a local pet supplies company. The company makes an annual donation and provides prizes for the winners of the dog and cat show. In return for this their services are advertised in the event programme and their logo is printed on the T-Shirt. The Main Expenses are as follows: No Expenses Rent, rates, heat and light The shelter is a rented property. The expenses is all paid by monthly directly debit Employee Costs Brandon and Sofia Jane are salaried. They are paid directly into their bank accounts on a monthly basis. The maid and the bookkeeper are paid by the hour. They are paid by cheque on a weekly basis. Vet Bills The local vet provides his time free but any medicines etc. do need to be paid for. Payments are made by cheque on receipt of the invoice Printing Costs Leaflets are produced to support fund raising campaigns. The most significant element of this cost is the dog show programme which outlines the timetable of the events. The programme are printed and delivered to DOGGIESCATTIES HAVEN in May. The printer invoices at the time of delivery. The accounts are maintained by the bookkeeper on a computerized spreadsheet. Occasionally the treasurer may also assist with the preparation of accounting information at particularly busy times in the year, for example, immediately after the dog show. quired: a) List the factors specific to the audit of a charity (based on the above said scenario) which would affect inherent and control risk. (8 marks) b) As the auditor of DOGGIESCATTIES HAVEN, discuss the key planning issues based on the scenario. (14 marks) c) Outline the audit work you would plan to perform in respect of the following expenses: (0) Rent, rates, light and heat (1) Employee costs (iii) Vet Bills (iv) Printing costs (8 marks) TOTAL MARKS: 30