As part of your annual audit of Fall Camper Company, you have the responsibility for preparing a report on internal control. Your workpapers include a completed internal control questionnaire and documentation of other tests of the internal control system which you have reviewed. This review identified a number of material weaknesses; for some of these corrective action by management is not practicable in the circumstances.

Required:

a. Discuss the form and content of the report on internal control based on your annual audit.

b. Write the first, fourth, and fifth paragraphs of your report

c. Discuss the differences in the form and content of the report if it were based on preestablished criteria of a regulatory agency.