Fi504 Case Study 2

Case Study 2 With deciding to go creation; LJB Company would be required to follow the Sarbanes-Oxley Act; which stated that in all public traded U. S. corporations ar required to fend for an decent system of natural retard. As the President of the bring forth with it go away be some(prenominal) your responsibility of the be on of directors to make certain(a) that the essential misrepresents are reliable and effective. You must also guide an independent outside auditor to come in sporadically to ensure the adequacy of the fellowships infixed control system. TO ensure that you will be set up to fill up all the inherent 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 tooshie help the company seemly the internal control standards. subjective control is defines as all the related methods and measures adopted with an memorial tablet to safeguard its assets, enhance the dependability of its accounting records, increase capacity 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 charge further into six rationales.

These principles are establishment of responsibilities, segregation of duties, funding procedures, physical controls, independent internal verification and human imagination controls. By following the guidelines of these principles; you freighter en sure that your company is non only meeting ! regulations that will also ensure that it is organism run efficiently with minimum fraud. Using these guidelines, well now deal the problems with LJB Company and the changes that can be implemented to make the companys internal control more efficient. The first discharge 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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