Fi 504 Case Study 2

Case Study 2 FI504 1. If LJB high society decides to go public, there allow for extremity to be some changes to their day-by-day operating practices. The Sarbanes-Oxley set of 2002 (SOX) was put in place by the United States governance to require publicly traded corporations to have an fit system of national crack. External auditors must check the internal dominance system, and special requirements must be met. There ar cardinal capital components of internal condition systems: a maintain environment, risk assessment, reckon activities, information and communication, and monitoring. LJB go with bequeath need to have a defined structure for all five of these aspects in coif to conform to SOX standards, the most important of which is the control activities. 2. There are a few things that LJB Company is doing that are recommended practices and help with internal control processes. One of these is the use of pre-numbered documents (invoices). Th is manner prevents a achievement from creation recorded more than once, or from skipped. If checks are being written at LJB Company, the best style to do this is with a machine that uses indelible sign. The blank checks should be stored in a safe or vault with dependant access.

Having an indelible ink check printing machine go away follow control activities stage of internal controls, because this piece of equipment will help to cast down the chance of fraud. There seems to be a good control environment in spite of appearance LJB Company; the president takes an active map in showing that oneness and unethical activities are non acceptable. The president is also aware of events within the company, and stays on top! of his responsibilities. 3. There are a variety of things that LJB Company could improve upon. One of the first things that is microscopic from the notes is that one comptroller covers the position of both Treasurer and Controller. steady though this after part reduce the number of employees, related to purchasing activities should be...If you want to strike a full essay, revision it on our website: OrderEssay.net

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