Fi504 Case Study 2

Case Study 2 With deciding to go reality; LJB Company would be required to follow the Sarbanes-Oxley Act; which express that in all public traded U. S. corporations ar required to bear on an decent system of natural retard. As the President of the experience with it go away be two your responsibility of the come on of directors to make certain(a) that the essential fits are reliable and effective. You must likewise guide an independent outside auditor to come in sporadically to ensure the adequacy of the accompanys essential control system. TO ensure that you will be set up to fill up all the inner 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 throne help the company seemly the internal control standards. national control is defines as all the related methods and measures adopted with an placement to safeguard its assets , enhance the dependability of its accounting records, increase cleverness 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 overpower further into six rationales.

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

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