Internet-based exercise.
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 for the fiscal year 2011 and form 990 for 2011. Form 990 can also be obtained from www.guidestar.org. Answer the following questions for each organization.
What standards were applied in conducing the audit? Was the audit a Single audit? How do you know? What reports result from single audit?
Identify the federal agencies that have extended grants to these organizations. Are these the agencies that you would expect? Why or why not?
For the fiscal year 2011, 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.