Larry and Hank are employees of one of the leading accounting firms, CPAs. The two have...

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Accounting

Larry and Hank are employees of one of the leading accountingfirms, CPAs. The two have recently obtained their licenses ascertified public accountants, CPA, however they are consideringstarting their own accounting practice.
Using Brown's risk taxonomy, identify and describe at least fiverisks that Larry and Hank must take into account if they plan toopen their own business. For each risk you identify, suggest one ormore internal controls that may lessen it.

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As per Browns Risk Taxonomy there are various types of risk which are as follows 1 Financial Risk Financial Risk are related to monetary activities In case of financial risk there is a Market Risk which refers to changes in companys Stock prices Investment values and Interest Rates Further Credit Risk is associated with Customers unwillingness or inability to pay amounts owed to organizations Liquidity Risk involves the possibility that company will not have sufficient cash and nearcash assets to meet its short term obligations Internal Control The Company may place a Proper Internal Control system to avoid this risk In case of Credit Risk the Company may place a system of See Answer

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