Final answer:
The primary engagement objective for reviewing a not-for-profit organization's special revenue fund is to ensure accurate financial reporting and compliance with the fund's designated purpose.
Step-by-step explanation:
In an engagement to review a not-for-profit organization's special revenue fund, the primary engagement objective is to determine whether the organization has presented the revenues and expenses associated with the fund accurately and whether the fund has been operated in accordance with the specified purpose or restrictions.
The review will typically involve evaluating the internal control structure, assessing risk, and performing analytical procedures to ensure compliance with generally accepted accounting principles (GAAP) and other applicable regulations. This could include verifying the accuracy of recorded transactions and ensuring that allocated funds are being used for their intended purposes.
Auditors aim to provide assurance that the not-for-profit organization is managing and reporting on its special revenue fund effectively, which is crucial for maintaining trust among donors, stakeholders, and regulatory bodies.