ACC327_Case1

ACC327_Case1 - Acc 327 Case No. 1 Spring 2011 It is...

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Acc 327 Case No. 1 Spring 2011 It is February 23, 2011, and you are auditing the 2010 calendar year-end financial records of Alabama Tech University’s (ATU’s)Alumni Association. The Alumni Association is a not- for-profit organization that is a separate legal entity from the university. The association’s primary mission is to provide information and benefits to its members. Each of the association’s approximately 150,000 members pays an annual membership fee of $50. Ordinarily, the financial records of such an organization present no particular challenges to an auditor. However, this alumni association did something rather unusual during 2010. In March 2010, the association spent $50,000 to buy the century-old house where the legendary ATU coach, Paul “Grizzly” Brine, was born and raised. The association paid another $200,000 to refurbish the house and move it to land owned by the association adjacent to the ATU campus in Tooloosa. For a fee of $3 per person, individuals can tour the three-room house and see it as Coach Brine described it in his memoirs years earlier.
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