Case Study #2 – Internal Control 1. The decision to take LJB Company public will require the company to follow new control procedures. The company will have to comply with The Sarbanes-Oxley Act of 2002 (SOX). The company will be required to maintain an acceptable system of internal control. The board of LBJ will be responsible for warrant that the control process is effective. The companies must have external auditors verify to the adequacy of the internal controls put in place. Be aware
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CASE STUDY 2 – Internal Control Brian D. Cox ACCT 504 1) In its annual report‚ the Company must report on internal controls over its financial reporting. Four key elements must be included in this report: * Statement of Responsibility by Company Management (the CEO and CFO) for establishing and maintaining an adequate internal control structure and procedures for financial reporting. * Statement identifying the framework used by management to evaluate the effectiveness of the Company
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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
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Case Study 2 – Internal Control ACCT504 Elicia Myrieckes October 4‚ 2014 1. New Internal Control Requirements If the Company Decides to Go Public. If the company decides to go public it should include in its annual reports the company’s internal control over financial reporting. This report must include: a statement of management’s responsibility for establishing and maintaining adequate internal control over financial reporting; management’s assessment of the effective of internal control
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symbol. 1. Corporations generally receive more favorable tax treatment than sole proprietorships and corporations. A. True B. False Correct! Sole proprietorships and partnerships generally receive more favorable tax treatment than corporations. 2. Which is not one of the three forms of business organization? A. Sole proprietorship B. Creditorship C. Partnership D. Corporation This is one of three forms of business organization discussed in the chapter. 3. Which is an advantage of corporations
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LJB Company: Internal Controls LJB Company: Internal Controls Contents Introduction 3 Internal Control Requirements 2 Strengths and Recommendations 2 Violations 3 Conclusion 4 Works Cited 4 Introduction LJB Company has asked the accounting firm to evaluate their system of internal controls because of the plan to go public in the near future. The president wants to be aware of any new regulations required of his company if they go public. The current system of internal controls
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Case Study 2 -Internal Control LJB Company‚ a local distributor‚ has asked your accounting firm to evaluate their system of internal controls because they are planning to go public in the future. The President wants to be aware of any new regulations required of his company if they go public so he met with a colleague of yours at a local restaurant. The President of the company explained the current system of internal controls to your colleague. Your colleague has since been promoted to a tax
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ACCT504 Practice Case Study 3 on Cash Budgeting This is a practice case study to help you become familiar with how to create a comprehensive cash budget. The cash budget relates to TCO D and is discussed in Chapter 4. The actual case study assignment should be uploaded to the Week 6 Assignment Dropbox by 11:59 p.m. mountain time on Sunday at the end of Week 6. You are encouraged to use the Excel template file provided in Doc Sharing. The Cambridge Company has budgeted sales revenues as follows
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public. People have a tendency to believe that things like this can only happen to massive companies‚ but we must remember that Enron once started off as a small company‚ a company like LJB. In 1985‚ they were just a pipe line company‚ and by 1999 they were the biggest online trading company in the world. Why can’t LJB grow to be as massive as Enron? Except this time‚ let’s do it the ethical way. Let’s make sure we don’t hurt our shareholders‚ our employees‚ and most importantly‚ let’s make people
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Case Study 2: LJB Company’s Internal Controls Michael Del Toro FI504 - Accounting Abstract This paper shall focus on the criticalities involved in LJB’s transactions and how it may implement internal controls to the business processes while increasing the accountability of individuals involved in its ‘lean business process.’ With the advent of the Sarbanes-Oxley Act and its repercussions to the manner in which businesses must prevent fraud (both external and internal) to not misrepresent any
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