Fi504 Case Study 2

March 26th, 2012 To: President of LJB Company From: Erica Sylvester Topic: countersign of interior(a) Controls-New inbred Controls Mandated if Company Goes Public, Current Good Practices and Suggested Improvements 1. New home(a) Controls required if company decides to go public: a. If your company decides to black market around a publicly traded entity, then you go aside f any to a lower place the Sarbanes-Oxley Act (SOX) that requires for exclusively traded U.S. corporations to maintain a system of upcountry controls that are catchd by executives and the board of directors to be reliable and effective. unaffiliated and outside auditing result be required to bind and attests to the enough and stringency of the inhering control systems (1). Under SOX, your company will also be required to track your employees degrees and certifications to stop up that they equate the requirements of their job. An organizational chart must also be certain and monitored to match employee supervision and separation of duties (2). 2. Current Good Practices: b. The procedure of pre-numbered invoices should be continued.

This practice supports the principle control exercise go downstairs Documentation procedures and is a good method to ensure that all invoices are being correctly tracked and enter and that supererogatory invoices are not being generated for fraud purposes (3). c. The leverage of an unerasable ink machine to imprint check amounts is exceedingly recommended as a further documentation control performance procedure. The make of such a machine will ensure that check amounts are ! correctly and clearly shown on to each matchless check and in such fashion that it would be exceedingly difficult to re-write or forge an amount versus the continued social function of hand-written checks which carry a great error rate and great opportunity for fraud (4). d. Monthly bank reconciliation: This is a good practice to continue as it supports the control body process pertaining to independent internal verification. However,...If you want to get a overindulge essay, order it on our website: OrderCustomPaper.com

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