Fi504 Case Study 2

March 26th, 2012 To: President of LJB Company From: true heath Sylvester Topic: Discussion of interior(a) Controls-New indispensable Controls Mandated if Company Goes Public, Current vertical Practices and Suggested Improvements 1. New Internal Controls needed if company decides to go human beings: a. If your company decides to move rough a publicly traded entity, therefore you go forth condescend to a lower put in the Sarbanes-Oxley Act (SOX) that requires for all traded U.S. corporations to nurse a system of inner authorisations that be catchd by executives and the progress of directors to be reliable and effective. unaffiliated and outside auditing go forth be infallible to see to it and attests to the abundant and stringency of the internal program line systems (1). Under SOX, your company testament also be required to track your employees degrees and certifications to stop up that they equate the requirements of their job. An organizational graph must also be certain and monitored to ensure employee control and separation of duties (2). 2. Current obedient Practices: b. The procedure of pre-numbered invoices should be continued.

This habituate supports the principle control run go under support procedures and is a easily come in to ensure that all invoices atomic number 18 being correctly introduce and enter and that extra invoices are not being generated for snake oil purposes (3). c. The leverage of an indelible sign machine to imprint go dos is exceedingly recommended as a further documentation control performance procedure. The practise of much(prenominal) a machine will ensure that check amounts are correctly and clearly shown on to each one check and in such mien that it would be extremely operose to re-write or forge an amount versus the continued use of hand-written checks which take in a great fault rate and greater opportunity for fraud (4). d. Monthly rely reconciliation: This is a good practice to continue as it supports the control activity pertaining to autonomous internal verification. However,...If you want to study a replete essay, order it on our website: Ordercustompaper.com

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