PAC2602_Assessment_02_Semester_02_2025

PAC2602
Assessment 02
Unique No:
Due 2025

, PAC2602

Assessment 02

(Semester 2, 2025)

Unique Number: 778354

Question 1

1.1 Importance of Auditing Finances of a Paralegal Advice Centre

Introduction

A Paralegal Advice Centre (PAC) is a community-based organisation that provides
access to justice, legal advice, and advocacy services to communities that often cannot
afford legal representation. Since most PACs operate as non-profit organisations
(NPOs), they rely heavily on donor funding, government grants, and community
contributions. For this reason, proper financial management is essential. Auditing the
finances of a Paralegal Advice Centre is one of the most effective mechanisms to
ensure accountability, transparency, and sustainability.

This section will discuss in detail the importance of auditing, drawing from South African
legislation, non-profit governance frameworks, and practical examples from community-
based organisations.

1. Accountability to Stakeholders

One of the primary reasons for auditing is accountability. PACs often receive funding
from:

 Government grants (e.g., Department of Justice and Constitutional
Development).
 Private donors (corporates through Corporate Social Investment programmes).
 International organisations (e.g., UNICEF, EU, USAID).