Income Statement Analysis Hofstra University

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After reviewing the income statement, balance sheet, and statement of functional allocation on the IRS form 990 for the non-profit organization of Hofstra University for the year of 2010, I believe that the organization is currently growing. The company seems to be operating in a solvent state in terms of balance sheet and cash flow solvencies. The organization has diversified forms of revenue and concentrates on program service revenues. In terms of profits the organization has a recognized profit of $35,217,505 for the current year compared to a profit of $28,674,956 for the prior year. In terms of risks to the organization, deferred revenue and tax exempt bond liabilities constitute the bulk of the liabilities and investments with hedge funds and other forms of investment…show more content…
This account can be the target of fraud in the organization because it can be intentionally misstated and violate the accuracy assertions. Employees can easily misstate the amounts that a fundraising event actually cost the organization and pocket the discrepancies. The auditor should do analytical procedures and substantive tests in order to detect these misstatements. Additionally this account should be analyzed and compared to the bills the organization has on file. The final account that is on the balance sheet under the net assets and fund balances of the balance sheet would be the unrestricted net assets account. This account can be a target for the organization for an intentional misstatement because they could show that they have more assets that are unrestricted when realistically they could be restricted. Being able to show the difference would involve a detailed inspection. The auditor should do analytical procedures and substantive tests in order to detect these

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