Case
AMAL (HOPE) FOUNDATION
INDUSTRY :-
AREA :ACCOUNTING & CONTROL
ORGANIZATION :-
LENGTH :10
LUMS No :01-513-2015-1
PUBLICATION YEAR : 2015
ABSTRACT:
The objective of the case is to analyse the internal controls of a civil society organisation to help participants understand the importance of such controls. The COSO framework will be used to highlight the areas of internal controls that require attention from the organisation to achieve its overall goals and objectives. Discussion will be structured in such a way that the participants are taken through different organisational aspects of internal controls, starting from the study of the control environment of the organisation and moving on to the risk assessment process and then finally talking about the information system, control activities and the monitoring of these activities. Specifically, the case highlights the issues with the accountants, educational background of the board of trustees, organisational structures, reporting lines and a lack of segregation of duties. Apart from a general discussion about internal controls, the case describes three different scenarios where participants will have to decide whether the situation describes a fraud or an accounting error. The participants will be asked to recommend appropriate action thereon. The protagonist Anwar is a financial consultant hired by Amal Foundation to assist the organisation in meeting its internal financial control requirements for getting its PCP certification. Apart from recommending general improvements in the internal controls given the budget constraints, he has to ascertain the possibility of fraud by the accountant. The case can be taught under the topic of internal controls for CSO sector trainings and undergraduate courses like “Principles of Financial Accounting†and “Principles of Management Accountingâ€.