Overview: Internal control is a process designed to provide reasonable assurance of the achievement of objectives relating to operations, reporting, and compliance during an audit of internal controls. Auditors are chiefly concerned with those controls that impact financial statements and cause a risk of material misstatement.
Prompt: For this first milestone, you will begin creating your audit plan for Robbins Network Services (RNS), the company in the attached project scenario. You will 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.
Guidelines for Submission: The memo should follow these formatting guidelines: approximately 2–3 pages, double spaced, with 12-point Times New Roman font, one-inch margins, and citations in APA style.