What steps would you take to audit the case below? The...

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Accounting

What steps would you take to audit the case below?

The key to auditing the effectiveness of a social program is in establishing its objectives. The Office of Economic Opportunity (OEO) designed special impact programs to reduce unemployment, dependency, and community tensions in urban areas with large concentrations of lowincome residents and in rural areas having substantial migration to such urban areas. The purpose of these experi-mental programs, which combine business, community, and manpower development, is to offer poor people an opportunity to become selfsupporting through the free enterprise system. The programs are intended to create training and job opportunities, improve the living environment, and encourage development of local entrepreneurial skills. One area chosen to participate in several special impact programs was High Ridge. The High Ridge program was the first and largest such program to be sponsored by the federal government. It has received more than $960 million in federal funds from its inception through the current year. Another $250 million was obtained from private sources, such as the Ford Foundation and the Astor Foundation. High Ridge is a fivesquaremile area with a population of 350,000 to 400,000 in New York Citys borough of Brooklyn. The area has serious problems of unemployment, underemployment, and inadequate housing. High Ridges problems are deepseated and have resisted rapid solution. They stem primarily from the lack of jobs in the area and from the fact that local residents, to a considerable degree, lack the education and training required for the jobs available elsewhere in the city. Unemployment and underemployment, in turn, reduce buying power, which has a depressing effect on the areas economy. The magnitude of High Ridges problems is indicated by the following data disclosed by the U.S. Census Bureau: Of the total civilian labor force, 8.9 percent are unemployed, compared with unemployment rates of 7.1 percent for New York City and 6.8 percent for the New York Standard Metropolitan Statistical Area (SMSA). Per capita income is 66 percent that of New York City and 51 percent that of the SMSA. Families below the poverty level make up 24.8 percent of the population, compared with 11.4 percent in New York City and 9.2 percent in the SMSA

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