Fi504 Case Study 2

Case Study 2 With deciding to go institution; LJB Company would be required to follow the Sarbanes-Oxley Act; which stated that in all public traded U. S. corporations ar required to carry an decent system of natural retard. As the President of the muster with it go away be two your responsibility of the mature of directors to make certain(a) that the essential prevails are reliable and effective. You must too guide an independent outside auditor to come in sporadically to ensure the adequacy of the confederacys indwelling control system. TO ensure that you will be set up to fill up all the interior 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 nates help the company seemly the internal control standards. midland control is defines as all the related methods and measures adopted with an ecesis to safeguard its assets, e nhance the dependability of its accounting records, increase talent 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 cumulus further into six rationales.

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