a. Main audit areas to consider in relation to the audit of Savealife Nigeria:
When auditing Savealife Nigeria, the following audit areas should be considered:

1. Planning:
   The auditor must understand the specific nature and operations of Savealife, including its objectives and scope. The audit should also consider local regulations and the environment in which the NGO operates.
2. Risk Analysis:
   A thorough risk analysis should be performed, including:
   • Inherent Risk: Associated with the nature of Savealife’s activities and the environment.
   • Control Risk: The risk related to the internal controls in place, such as authorisation of expenses and income.
   • Detection Risk: The risk that the auditor may not identify material misstatements during the audit.
3. Internal Control:
   The auditor should evaluate internal control systems, especially:
   • Segregation of duties.
   • Authorisation of spending.
   • Controls over donations, grants, bequests, and cash collections.
   • Ensuring funds are used only for authorised purposes.
4. Audit Evidence:
   A substantive testing approach should be used, particularly for areas such as completeness of transactions, assets, and liabilities. Analytical procedures should also be applied where appropriate.
5. Reporting:
   Since this is a voluntary audit, the report should align with the agreed audit objectives and follow the structure outlined by International Standard on Auditing (ISA) 700.

b. Other factors peculiar to not-for-profit organisations:
Auditors of not-for-profit organisations, such as Savealife Nigeria, should consider the following:

1. Cash Significance:
   Cash may play a significant role in small not-for-profit organisations, with limited controls in place.
2. Limitations on Scope:
   The auditor may face scope limitations if audit evidence is difficult to obtain due to informal practices, such as donations.
3. Income Risks:
   Income, especially from donations or informal fundraising, could be a high-risk area.
4. Lack of Predictable Income:
   Not-for-profit organisations may lack a predictable relationship between income and expenditure, making analytical reviews more challenging.
5. Restricted Funds:
   Organisations may have restricted funds that can only be used for specific purposes, requiring careful monitoring of how funds are applied.