Fi504 Case Study 2

Case Study 2 With deciding to go domain; LJB Company would be required to follow the Sarbanes-Oxley Act; which verbalize that in all public traded U. S. corporations ar required to keep up an decent system of natural retard. As the President of the come along with it go away be two your responsibility of the add-in of directors to make certain(a) that the essential covers are reliable and effective. You must besides guide an independent outside auditor to come in sporadically to ensure the adequacy of the participations indwelling control system. TO ensure that you will be set up to fill up all the internecine control requirements by the time LJB goes public, this root word will list the requirements of internal control and state what your company is currently doing correct and that back help the company seemly the internal control standards. ingrained control is defines as all the related methods and measures adopted with an makeup to safeguard i ts assets, enhance the dependability of its accounting records, increase skill of operations, and ensure compliance with laws and regulations. It has quintet primary components, a control environment, risk assessment, control activities, info and communication, and monitoring. These components are broken vote down further into six rationales.

These principles are establishment of responsibilities, segregation of duties, funding procedures, physical controls, independent internal verification and human option controls. By following the guidelines of these principles; you freighter ensure that your company is non only meeting regul ations that will also ensure that it is be! ingness run efficiently with minimum fraud. Using these guidelines, well now handle the problems with LJB Company and the changes that can be implemented to make the companys internal control more efficient. The first publicise that LJB needs to track is the fact that the accountant serves as both Treasurer and Controller. This is violating the principle of segregation of...If you want to get a full essay, rules of order it on our website: BestEssayCheap.com

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