NRM Industries Limited (NRM) is a large family-owned, import-export business. NRM was founded in 1986 by three brothers named Clan, who used the initials of their first names. Now,

control is about to be passed from the brothers to their children, seven of whom work directly for NRM. Another three children work for companies with whom NRM does business. One,

Clan Logistics, manages the warehouses and deliveries for NRM. The Board of Directors is composed of the three brothers plus all ten of their children.

As part of estate planning, each brother owns a different company that owns their shares of NRM. When they formed the company, they each took one common share. Later, they

reorganized. Each brother traded their one share for 10,000 new shares. Now they are about to reorganize again and go public. Their plan is to trade each10,D00 shares for 10,000,000

shares and issue another 20,000,000 shares to the public.

NRM has never had an audit. Ashley Clan, CFO, has approached your audit firm, Isla, Rowlands and Levy (IRL) to do an audit prior to issuing a prospectus. Ashley went to college with on

of your partners. Sales in 2021 for NRM are approximately $130 million.

Required

Briefly discuss five elements to consider in your engagement planning,