A civil association has not provided information on the distribution of profits to its partners, which would amount to 30% of the profits generated; however, since its operations are non-profit, this causes discomfort in the community and legal action will be taken against its partners for not making the use of resources and contributions of each member of the association transparent. a. Identifies the activities that are omitted according to the components of the COSO model. b. Describes the types of risks that unfair practices imply for the association. c. Suppose you are a member of the board of directors and establish activities to avoid the possibility of fraud.
A civil association has not provided information on the distribution of profits to its partners, which would amount to 30% of the profits generated; however, since its operations are non-profit, this causes discomfort in the community and legal action will be taken against its partners for not making the use of resources and contributions of each member of the association transparent. a. Identifies the activities that are omitted according to the components of the COSO model. b. Describes the types of risks that unfair practices imply for the association. c. Suppose you are a member of the board of directors and establish activities to avoid the possibility of fraud.
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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A civil association has not provided information on the distribution of profits to its partners, which would amount to 30% of the profits generated; however, since its operations are non-profit, this causes discomfort in the community and legal action will be taken against its partners for not making the use of resources and contributions of each member of the association transparent.
a. Identifies the activities that are omitted according to the components of the COSO model.
b. Describes the types of risks that unfair practices imply for the association.
c. Suppose you are a member of the board of directors and establish activities to avoid the possibility of fraud.
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