ACC 411 Milestone Two Guidelines and Ru
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ACC 411 Milestone Two Guidelines and Ru
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Overview: Careful planning is a critical part of the success of every audit. However, planning is not simply done at the beginning of the audit but is a continuous
and iterative process in which the results of one stage of the audit often necessitate revisions to plans for the next stage.
Prompt: Using your analysis of the business environment of RNS from Milestone One, as well as your textbook reading on planning an audit of cash accounts,
write an audit program (plan) that could be used to evaluate RNS’s internal controls for cash. Be sure your program addresses each component of internal
control.
Specifically, the following critical elements must be addressed:
I. Write an audit program for internal control of cash in Word or Excel. The following components must be included:
A. Control environment
B. Risk assessment
C. Control activities
D. Information and communication
E. Monitoring
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Guidelines for Submission: You can submit your audit program using Microsoft Word or Excel.
Critical Elements Proficient (100%) Needs Improvement (75%) Not Evident (0%) Value
Audit Program:
Control Environment
Writes an audit program that effectively
and completely addresses the control
environment component of internal
control of cash
Writes an audit program for the control
environment component of internal
control of cash, but the program is
inappropriate, incomplete, or unclear
Does not write an audit program for
the control environment component
of internal control of cash
18
Audit Program: Risk
Assessment
Writes an audit program that effectively
and completely addresses the risk
assessment component of internal
control of cash
Writes an audit program for the risk
assessment component of the internal
control of cash, but the program is
inappropriate, incomplete, or unclear
Does not write an audit program for
the risk assessment component of
internal control of cash
18
Audit Program:
Control Activities
Writes an audit program that effectively
and completely addresses the control
activities component of internal control
of cash
Writes an audit program that addresses
the control activities component of
internal control of cash, but the program
is inappropriate, incomplete, or unclear
Does not write an audit program that
addresses the control activities
component of the internal control of
cash
18
Critical Elements Proficient (100%) Needs Improvement (75%) Not Evident (0%) Value
Audit Program:
Information and
Communication
Writes an audit program that effectively
and completely addresses the
information and communication
component of internal control of cash
Writes an audit program that addresses
the information and communication
component of the internal control of
cash, but the program is inappropriate,
incomplete, or unclear
Does not write a program that
addresses the information and
communication component of the
internal control of cash
18
Audit Program:
Monitoring
Writes an audit program that
completely and effectively addresses
the monitoring component of internal
control of cash
Writes an audit program that addresses
the monitoring component of internal
control of cash, but the program is
inappropriate, incomplete, or unclear
Does not write a program to address
the monitoring component of the
internal control of cash
18
Articulation of
Response
Submission has no major e
ors related
to citations, grammar, spelling, syntax,
or organization
Submission has major e
ors related to
citations, grammar, spelling, syntax, or
organization that negatively impact
eadability and articulation of main ideas
Submission has critical e
ors related
to citations, grammar, spelling,
syntax, or organization that prevent
understanding of ideas
10
Total 100%
ACC 411 Milestone Two Guidelines and Ru
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Ru
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ACC 411 Milestone One – Final Project Scenario 4
ACC 411 MILESTONE ONE – FINAL PROJECT SCENARIO
Table of Contents
Introduction 3
Financial Business Transactions of RNS 3
Business Risks of RNS 4
Recommended Internal Controls of RNS 5
Ethical Issues of RNS 6
Cu
ent Events 6
References 8
Introduction
This project is associated with the internal controls which needs to be implemented in the Ro
ins Network Services (RNS).
To: Ro
ins Network Services (RNS)
From: CPA, Audito
Subject: Business Audit Plan
Date: September 18, 2022
Financial Business Transactions of RNS
It is Ro
ins Network Services (RNS) which provides various types of financial business transactions which are associated with the selling and installation of the computers, software and hardware networking. Hence, as per the meaning of financial transactions it is considered as an agreement which is there between a buyer and a seller with respect to exchange of goods and services (Kopp, XXXXXXXXXXRNS delivers additional facilities and services to the various business consulting firms which deals in information technology industry. It is therefore, RNS which hires employees who are efficient and highly skilled and deliver the companies with paid for services. RNS also relies on the newly innovative services along with anticipated success while developing the computer networking system and software. Hence, RNS provides with the compensation for delivering cu
ent services along with the hypothetically additional financial transactions along with the pending products.
Business Risks of RNS
It is the business risks which is described as the exposure of a company has to factors which will help in reducing the profits or lead to failure (Kenton, XXXXXXXXXXIt is Ro
ins Network Services (RNS) which has five primary business risks which are as follows:
1. There may be a considerable downturn which may be suffered by the US economy.
2. It will be the competitors which will be engaged with predatory pricing which will help the company to acquire a greater market share.
3. It will help in increasing the costs of advertising and will help in producing a desired result.
4. There will be credit losses which may help in rise and exceeding the benefits of enhanced sales.
5. Finally, it will be software development tasks which will not able to generate feasible products.
The highest amount of risk for RNS will be associated with the US economy and will suffer from significant downturn. It is US which is considered as a thrust during the global pandemic situation of covid-19 and had a considerable impact on the economy of the world. These incidents are unpredictable and have an instantaneous influence on the companies. According to some projections, it can be forecasted if the economy will return to the regularity or there will be an extended period the outcome of which will be an economic turmoil. Due to the present worldwide financial status, it will be the competitors which will have additional pressure for engaging themselves in predatory pricing for gaining more market shares. This is unknown according to the present status of the market. It will be RNS which must be structured in order to deal with the competitors for reducing the prices and persuade away the RNS’s businesses. There are several risks which are associated with RNS while releasing a new product as it could result in non-generation of a newly viable product which are being sold by the company. Hence, there could be significant amount of risk for the company as there are chances to drive out the new software development for gaining the new customer sales.
Recommended Internal Controls of RNS
It can be recommended that there are several types of internal controls which could be beneficial for the Ro
ins Network Services (RNS). There must be a planned implementation of internal control in the company and is hence defined as a process which impacts the board of directors of the company, administration and various personnel of the company which are structured for delivering a reasonable assurance with respect to the achievement of goals associated with the operations, reporting and compliance (Whittington, Pany, XXXXXXXXXXIt will be segregating the duties of the personnel which can be the first internal control of RNS. This means that each employee will have an obligation which they need to complete. It is suggested that specific employees will be allocated activities such as bookkeeping, reporting, audit and deposits. If separation of duties is being used, it will result in reducing the risk of fraudulent activities from being happening. Secondly, it will be the establishment of accounting system access controls which will be very useful for RNS. These forms of controls consist of usage of password in encrypted format with respect to the specific accounting system and this will limit the number of authorized users who have the authority to access the information. Therefore, this will help in averting the undesirable users from accessing any types of sensitive information of private nature associated with the business. Finally, it will be internal controls which will be beneficial for RNS for reducing any types of fraudulent activities which may occur in the company.
Ethical Issues of RNS
There are various types of ethical issues with RNS of which manipulation of financial records is the first risk. The ethical issues such as RNS which is highly competitive will be able to control the financial figure in case of a financial loss. This will put the accountant of the company at a productive situation where they have to report of inaccuracies which might result in losing their jobs in RNS. If they do not adhere to the ethical norms, they might lose their certification and may be charged with criminal charges. It is through training of the employees which will help them to have the highest standards of truthfulness and morality. Further, it will be employees who must be aware of the consequences which may face arising due to the unethical attitudes such as loss of reliability, documentation and criminal charges.
Cu
ent Events
The present risk and internal control which may arise in RNS is the global pandemic covid-19. There has been a decline in the GDP for two consecutive quarters, a decline of 9.1% in the 2nd quarter of 2020, whereas the quarterly GDP have never experienced