20-25 2 3 Ballantine Church has been located on a centraldowntown street in Toronto for over 120 years. Originally, thechurch was in the middle of farmland, but is now surrounded byhigh-rise apartments and condominiums. The church has an activeparish community that engages in fundraising in the neighbourhood,assisting the homeless, and providing drop-in housing during thewinter. Francine, the parish priest, and the church board havedecided it is time to have a review engagement completed for thechurch finances. In the past, this work has been done by churchmembers on a part-time basis.
The church organizes its finances based on five funds: operating,endowment, youth, homeless, and music scholarship. Any transfersfrom the endowment fund to the operating fund must be approved bythe board. The church has about $1.2 million in cash and marketablesecurities in the bank. The church is valued at zero on the balancesheet.
The church also owns a large house. Francine lives in a section ofthe house and the rest of the property is used for storage, asoffice space for three permanent church staff, and as meetingspace.
Required

a) What should you do before you accept the reviewengagement?
b) Outline the process for conducting the review engagement anddescribe any analytical review procedures that you would conductspecific to the church. What type of questions would you ask thatare specific to the church to address plausibility of financialinformation?