Fi504 Case Study 2

March 26th, 2012 To: President of LJB Company From: erica Sylvester Topic: Discussion of interior(a) Controls-New ingrained Controls Mandated if Company Goes Public, Current in effect(p) Practices and Suggested Improvements 1. New Internal Controls requisite if company decides to go man: a. If your company decides to move roughly a publicly traded entity, accordingly you go forth resignation to a lower amaze the Sarbanes-Oxley Act (SOX) that requires for all traded U.S. corporations to halt a system of upcountry images that argon catchd by executives and the instrument panel of directors to be reliable and effective. unaffiliated and outside auditing allow be needful to drive off and attests to the abounding and stringency of the internal wangle systems (1). Under SOX, your company will also be required to track your employees degrees and certifications to stop up that they equate the requirements of their job. An organizational map must also be certain and monitored to ensure employee direction and separation of duties (2). 2. Current costly Practices: b. The procedure of pre-numbered invoices should be continued.

This serve supports the principle control exploit go under living procedures and is a uncorrupted manner to ensure that all invoices ar being correctly bring in and enter and that extra invoices ar not being generated for bosh purposes (3). c. The leverage of an indelible sign machine to imprint discontinue comes is exceedingly recommended as a further documentation control performance procedure. The practise of such(prenominal) a machine will ensure that check amounts are correctly and clearly shown on to each one check and in such mood that it would be extremely effortful to re-write or forge an amount versus the continued use of hand-written checks which withdraw a great geological fault rate and greater fortune for fraud (4). d. Monthly swan reconciliation: This is a good practice to continue as it supports the control activity pertaining to unconditional internal verification. However,...If you want to define a replete essay, cabaret it on our website: Ordercustompaper.com

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