Fi 504 Case Study 2

Case Study 2 FI504 1. If LJB high society decides to go public, there allow for convey to be some changes to their everyday 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 suitable system of national crack. External auditors must check the internal dominance system, and special requirements must be met. There be cardinal capital components of internal condition systems: a reserve environment, risk assessment, manipulate activities, information and communication, and monitoring. LJB caller-up lead 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 be 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 system prevents a achievement from creation recorded more than once, or from skipped. If checks are being written at LJB Company, the best elan to do this is with a machine that uses indelible sign. The blank checks should be stored in a safe or vault with restricted access.

Having an indelible ink check printing machine lead 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 at bottom LJB Company; the president takes an active map in showing that integrity and unethical activities are non acceptable. The president is also aware of events within the company, and stays on top of his respons! ibilities. 3. There are a variety of things that LJB Company could improve upon. One of the first things that is subgross from the notes is that one comptroller covers the position of both Treasurer and Controller. scour though this after part reduce the number of employees, link purchasing activities should be...If you want to strike a full essay, cast it on our website: OrderEssay.net

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