Final Project Module 1.docx - Final Project Mileston One Internal Controls Southern New Hampshire University Ashley Mattos ACC411 Auditing Principles

Final Project Module 1.docx - Final Project Mileston One...

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Final Project: Mileston One: Internal Controls Southern New Hampshire University Ashley Mattos ACC411: Auditing Principles
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8/18/19 Robbins Network Services (RNS) primarily sells and installs computers and networking hardware and software, but they also provide IT consulting to businesses. In order for the company to be successful they need to hire experienced knowledgeable employees to provide the aforementioned services. However, RNS is not the only such company, IT Services companies are quite popular in this technological era, and as such they need to be competitive when providing similar, if not identical, products and services. Thus, customer service is of great importance, as is time management and quality products. As with any business there are risks associated with it, RNS faces 5 primary risks. 1. The U.S. Economy, should a downturn occur it would have a detrimental impact, as less customers will be shopping for computers or needing networking setups. 2. Loss of customers due to production shortfalls or shortages caused by many things such as natural disaster, management changes, products no longer being produced, etc. 3. Losses on credit may exceed sales benefits. 4. Costly advertising endeavors may not produce the desired sales. 5. Competitors may partake in predatory pricing to gain the market advantage. 6. Product distribution costs becoming too expensive to maintain steady sales. 7. Theft or lost items The aforementioned risks are high risks because they could happen, the economy can change quickly, and this is why companies use forecasting predictions to gauge their risks, sales, and losses. These projections use statistics to ascertain what might happen in the future; in addition, one might watch the global economy, if another country that the U.S. frequently trades with or relies on has a downturn, we may as well. If a natural disaster or costly increases in tariffs and
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government regulation can impact a business in a large way. CNBC posted a news article recently that stating that the U.S. economy is going to slow down due to the fading tax cuts, trade wars, and expensive tariffs, as well as the Federal Reserve’s rates-hiking policy that is in place (Domm, 2019). Things such as these affect the price a business needs to charge to continue to operate and a consumer’s ability to spend money; when the economy slows down, consumers and businesses alike tighten their belts to decrease spending. For consumers this means decreased spending, but for businesses they may need to lay off employees and/or decrease inventory on hand, sometimes they close altogether. Advertising to consumers can be quite costly as well, and if the advertising expense doesn’t bring in the expected sales this can hurt a business, especially small ones as capital is often low. In addition, there is always the risk that a competitor may be able to undercut your prices, which big name companies, such as Dell and Hewlett-Packard, are known to do; in this instance. the competing company would offer the
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