Fi504 Case Study 2

March 26th, 2012 To: President of LJB Company From: Erica Sylvester Topic: raillery of interior(a) Controls-New inbred Controls Mandated if Company Goes Public, Current Good Practices and Suggested Improvements 1. New inside Controls required if company decides to go public: a. If your company decides to melt around a publicly traded entity, then you go forwards f every to a lower place the Sarbanes-Oxley Act (SOX) that requires for altogether traded U.S. corporations to maintain a system of upcountry controls that are catchd by executives and the board of directors to be reliable and effective. unaffiliated and outside auditing get out be required to promise and attests to the enough and stringency of the ingrained control 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 chart must also be certain and mon itored to run into employee supervision and separation of duties (2). 2. Current Good Practices: b. The procedure of pre-numbered invoices should be continued.

This practice supports the principle control exercise go down the stairs Documentation procedures and is a good method to ensure that all invoices are being correctly tracked and enter and that trim invoices are not being generated for fraud purposes (3). c. The leverage of an indelible ink machine to imprint check amounts is exceedingly recommended as a further documentation control performance procedure. The set of suc h a machine will ensure that check amounts a! re correctly and clearly shown on to each sensation check and in such fashion that it would be super difficult to re-write or forge an amount versus the continued subroutine of hand-written checks which carry a great error rate and great opportunity for fraud (4). d. Monthly bank reconciliation: This is a good practice to continue as it supports the control operation pertaining to independent internal verification. However,...If you want to get a make full essay, order it on our website: BestEssayCheap.com

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