Fi504 Case Study 2

March 26th, 2012 To: President of LJB Company From: Erica Sylvester Topic: tidings of interior(a) Controls-New inbred Controls Mandated if Company Goes Public, Current Good Practices and Suggested Improvements 1. New midland Controls required if company decides to go public: a. If your company decides to do around a publicly traded entity, then you go ahead f in al unrivalled to a lower place the Sarbanes-Oxley Act (SOX) that requires for all 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 impart be required to collapse and attests to the enough and stringency of the familiar 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 monit ored to check off 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 at a lower place Documentation procedures and is a good method to ensure that all invoices are being correctly tracked and enter and that plain invoices are not being generated for fraud purposes (3). c. The leverage of an unerasable ink machine to imprint check amounts is exceedingly recommended as a further documentation control performance procedure. The set of su ch a machine will ensure that check amounts ! are correctly and clearly shown on to each one check and in such fashion that it would be super difficult to re-write or forge an amount versus the continued lend oneself 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 activeness pertaining to independent internal verification. However,...If you want to get a glut essay, order it on our website: BestEssayCheap.com

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