Internal auditors perform risk- based audits that go beyond the risks of the financial statements. Assume you are on the internal audit staff of McDonald’s.

Required:

a. Identify the risks in the fast- food industry associated with

1. Competition.

2. Customer preference.

3. The economy.

4. Technology.

5. Regulation.

6. Other risks.

b. Explain how each of the risks you identified could affect McDonald’s.

c. Explain how these risks might affect the internal audits performed by the internal audit staff for McDonald’s.