Analyze RNS’s business environment, including the standard business transactions performed by the company, business risks, impact of current events, and potential ethical issues, and determine the types of internal control that may be needed.
Specifically, the following critical elements must be addressed:
I. In a concise memo, evaluate the internal controls of RNS.
A. Describe the major financial business transactions of the company. Include appropriate research to support your answer.
B. Evaluate the highest business risks associated with this company. What makes you believe these specifically are the highest risks? Provide appropriate research or data to support your reasoning.
C. What would you suggest are the appropriate types of internal controls for this industry? Why?
D. Describe ethical issues involved with this company and industry that would have a direct effect on the outcome of a financial audit. How could these issues be addressed?
E. Analyze current events for their impact on this company’s risk and internal control in the future. Include documentation of these current events.
Sample Solution
