PAC2602
Assignment 2
Semester 2
Unique No: 778354
DUE 19 September 2025
, COMPULSORY ASSESSMENT 02
Unique number: 778354
DUE DATE: 19 September 2025 @ 10:00 AM
Question 1
Scenario Recap:
In December 2024, Giyani Paralegal Advice Centre’s website was hacked, money was
stolen from its bank account, and during the AGM it was revealed that its finances had
not been audited.
1.1 Why it is important for a registered Paralegal Advice Centre to have its
finances audited (5 marks)
✓ Accountability
An audit ensures that the centre’s financial activities are transparent and
accountable to its stakeholders, including the community, donors, and government.
✓ Legal compliance
Registered Paralegal Advice Centres operate as Non-Profit Organisations (NPOs).
According to the NPO Act 71 of 1997, such entities are legally required to keep
proper financial records and submit audited statements to maintain compliance.
✓ Financial credibility
Donors, funders, and partners are more likely to support an organisation with
audited financials because it demonstrates financial discipline and honesty.
✓ Detection of fraud and irregularities
Assignment 2
Semester 2
Unique No: 778354
DUE 19 September 2025
, COMPULSORY ASSESSMENT 02
Unique number: 778354
DUE DATE: 19 September 2025 @ 10:00 AM
Question 1
Scenario Recap:
In December 2024, Giyani Paralegal Advice Centre’s website was hacked, money was
stolen from its bank account, and during the AGM it was revealed that its finances had
not been audited.
1.1 Why it is important for a registered Paralegal Advice Centre to have its
finances audited (5 marks)
✓ Accountability
An audit ensures that the centre’s financial activities are transparent and
accountable to its stakeholders, including the community, donors, and government.
✓ Legal compliance
Registered Paralegal Advice Centres operate as Non-Profit Organisations (NPOs).
According to the NPO Act 71 of 1997, such entities are legally required to keep
proper financial records and submit audited statements to maintain compliance.
✓ Financial credibility
Donors, funders, and partners are more likely to support an organisation with
audited financials because it demonstrates financial discipline and honesty.
✓ Detection of fraud and irregularities
