Acct 504 - Case Study Ii - Internal Controll Essay Example
Case study II – Internal control
Managerial Accounting and Finance – ACCT 504
Keller Graduate School of Management
May 2013 Session
Date of June 11, 2013
Table of Contents Introduction 1 Internal control rules and regulations requirements before going public 1 THE BAD – Things that the company does poorly 2 Recommendations to the President 4 Conclusion 6 Bibliography 7
Case study II – Internal control
Introduction
Internal control refers to methods, techniques and measures that are practices by a company to safeguard the assets, enhance reliability of its accounting records, increase efficiency of its operations and making sure everything they do is in line with laws and regulations as ordered by security and exchange commission (Kimmel, Weygandt, & Kieso, 2011, p. 337) This is an internal control analysis report to the President of LJB company that plans to go public in the near future. In this report the author will highlight internal control regulations required for company in case they decide to public. As part of this paper, the author gives an advice to company’s President on what the company has done well in the aspects internal control as well as providing recommendation on things that have been done poorly.
Internal control rules and regulations requirements before going public
Before the LJB Company decides to go public, they will have to review and understand rules and regulations by Security and exchange commission as directed by Section 404 of the Sarbanes-Oxley Act of 2002. According to the report by Securities And Exchange Commission LJB Company will have to adapt to rules requiring companies subject to the reporting requirements of the Securities Exchange Act of 1934, other than registered investment companies, to include in their annual reports a report of management on the company's internal control over financial reporting (Securities and Exchange Commision, 2002). Under reporting rule, regulations require a
Managerial Accounting and Finance – ACCT 504
Keller Graduate School of Management
May 2013 Session
Date of June 11, 2013
Table of Contents Introduction 1 Internal control rules and regulations requirements before going public 1 THE BAD – Things that the company does poorly 2 Recommendations to the President 4 Conclusion 6 Bibliography 7
Case study II – Internal control
Introduction
Internal control refers to methods, techniques and measures that are practices by a company to safeguard the assets, enhance reliability of its accounting records, increase efficiency of its operations and making sure everything they do is in line with laws and regulations as ordered by security and exchange commission (Kimmel, Weygandt, & Kieso, 2011, p. 337) This is an internal control analysis report to the President of LJB company that plans to go public in the near future. In this report the author will highlight internal control regulations required for company in case they decide to public. As part of this paper, the author gives an advice to company’s President on what the company has done well in the aspects internal control as well as providing recommendation on things that have been done poorly.
Internal control rules and regulations requirements before going public
Before the LJB Company decides to go public, they will have to review and understand rules and regulations by Security and exchange commission as directed by Section 404 of the Sarbanes-Oxley Act of 2002. According to the report by Securities And Exchange Commission LJB Company will have to adapt to rules requiring companies subject to the reporting requirements of the Securities Exchange Act of 1934, other than registered investment companies, to include in their annual reports a report of management on the company's internal control over financial reporting (Securities and Exchange Commision, 2002). Under reporting rule, regulations require a