Internal Controls Within LJB Company
All publicly trader companies in the USA are required to maintain and have an up to date system of internal controls. Since the LJB Company is wishing to become a public entity, I am glad to be able to assist in this action. First, the rules and regulations must be reviewed and compared to the company and how it can become public. To make the company attractive to buyers, investors, and other capital sources, it is crucial that the corporate organization and governance are well manifested. Corporate executives and the board of directors within a corporation must ensure that these internal controls are effective. The reliability and efficiency of the internal controls must be directed and supervised by the board of directors and corporate executives (Kimmel 345).
Because the LJB Company is a small sized company in regards to the employee number, there should be a re-evaluation of the costs versus the benefits of being a publicly traded company. It would be best to know how the company would deal with stock in this case. A stock report needs to be made and discussed further regarding the number of shares, issuing stock, and stock value for the LJB Company.
To safeguard the assets, enhance the reliability of the accounting records, increase efficiency within the financial operations, safeguard the assets of the company, and ensure proper compliance with the laws and regulations, the Internal Control report is crucial to the company. A controlled environment, risk assessment, activity control, information and communication, and group monitoring should all be a part of the internal control report (Kimmel 349).
From the given information, the internal control components of an effective internal control system are not as efficient as they can be. Because LBJ is trying to go public in the near future, there are some requirements that must be met in within the internal control system. It is the responsibility of the management on how important ethics are within the
Because the LJB Company is a small sized company in regards to the employee number, there should be a re-evaluation of the costs versus the benefits of being a publicly traded company. It would be best to know how the company would deal with stock in this case. A stock report needs to be made and discussed further regarding the number of shares, issuing stock, and stock value for the LJB Company.
To safeguard the assets, enhance the reliability of the accounting records, increase efficiency within the financial operations, safeguard the assets of the company, and ensure proper compliance with the laws and regulations, the Internal Control report is crucial to the company. A controlled environment, risk assessment, activity control, information and communication, and group monitoring should all be a part of the internal control report (Kimmel 349).
From the given information, the internal control components of an effective internal control system are not as efficient as they can be. Because LBJ is trying to go public in the near future, there are some requirements that must be met in within the internal control system. It is the responsibility of the management on how important ethics are within the
References: Kimmel. Financial Accounting. 6. VitalSource Bookshelf. John Wiley & Sons.