The Rasmus Company manufactures small gas engines for use on lawnmowers and other power equipment. Most of its manufacturing has historically been in the Midwest, but it has recently opened plants in Asia that account for about 30% of its production. It is listed on the New York Stock Exchange.
1. Briefly explain the rationale and value of an audit of a publicly-held company to investors, creditors, and to the broader community as a whole.
2. Explain why an audit of internal control provides value to the investing public.
3. Explain the importance of an audit committee to the reliability of the financial statements and the audit function.