Ljb Company Case Study 2
LJB COMPANY | Internal Control | REQUIREMENTS AND REVISIONS |
Prepared To: LJB Company’s President
Prepared By: Yenny Gutierrez6/03/2013 |
TABLE OF CONTENTS
Introduction
New Internal Control Requirement 4
Establishment of responsibility 4
Segregation of duties 4
Documentation procedures 4
Physical controls 4
Independent internal verification 5
Human Resources controls 5
Reviewing LJB Internal Controls 5 Pre numbered invoices 5 Ink machine 5 Safe Box 5
Recommendations to LJB Company 6
Purchasing and Paying for Supplies 6
Petty Cash 6
Assign Passwords 6
Human Resources 6
Summary and Conclusion 7
INTRODUCTION
Internal control procedures are crucial to any business to make sure things stay on the right track, not just help the business to detect dishonesty but also can help the company to reduce the risk of not having a clear view of the company’s financial position due to mistakes done when recording transactions.
Internal controls consist of all the related methods and measures adopted within an organization to safeguard its assets, enhance the reliability of its accounting records, increase efficiency of operations and ensure compliance with laws and regulations.
It is our mission to evaluate LJB Company’s system of internal controls and will be our goal to help LJB Company to identify current problems and to implement new internal controls that will promote and develop a better organization and effectiveness in their operations.
Since it is the desire of LJB Company to go public in the future, we will go over the Sarbanes-Oxley Act of 2002 (SOX) which required to all publicly traded U.S companies to maintain an adequate system of internal control and based on current internal controls applied we will generate recommendations that will improve LJB Company current system.
1 1. New Internal Control Requirements
It is my pleasure to assist your
Prepared To: LJB Company’s President
Prepared By: Yenny Gutierrez6/03/2013 |
TABLE OF CONTENTS
Introduction
New Internal Control Requirement 4
Establishment of responsibility 4
Segregation of duties 4
Documentation procedures 4
Physical controls 4
Independent internal verification 5
Human Resources controls 5
Reviewing LJB Internal Controls 5 Pre numbered invoices 5 Ink machine 5 Safe Box 5
Recommendations to LJB Company 6
Purchasing and Paying for Supplies 6
Petty Cash 6
Assign Passwords 6
Human Resources 6
Summary and Conclusion 7
INTRODUCTION
Internal control procedures are crucial to any business to make sure things stay on the right track, not just help the business to detect dishonesty but also can help the company to reduce the risk of not having a clear view of the company’s financial position due to mistakes done when recording transactions.
Internal controls consist of all the related methods and measures adopted within an organization to safeguard its assets, enhance the reliability of its accounting records, increase efficiency of operations and ensure compliance with laws and regulations.
It is our mission to evaluate LJB Company’s system of internal controls and will be our goal to help LJB Company to identify current problems and to implement new internal controls that will promote and develop a better organization and effectiveness in their operations.
Since it is the desire of LJB Company to go public in the future, we will go over the Sarbanes-Oxley Act of 2002 (SOX) which required to all publicly traded U.S companies to maintain an adequate system of internal control and based on current internal controls applied we will generate recommendations that will improve LJB Company current system.
1 1. New Internal Control Requirements
It is my pleasure to assist your