Case Study 2 – Internal Control 1. Inform the President of any new internal control requirements if the company decides to go public. As per the accident that happened in the company about some employees was viewing pornography on company computer and he had a hard time to get his employees admitted that they were the one who doing it. He should use limit access by individual passwords for each person to log in the computer systems. To make sure that which person was log on in the computer and
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2 – Internal Control The following are the internal control requirements a company who wants to go public needs to be put into place. INTERNAL CONTROL REQUIREMENTS Management’s Assessment Section 404(a) of the Act and the related rules adopted by the SEC require management to assess the effectiveness of the company’s internal control over financial reporting as of the end of the company’s most recent fiscal year‚ and to state in the company’s annual report whether the company’s internal control
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may make a company more attractive to potential buyers‚ investors‚ and other capital sources. Under SOX Section 404‚ all publicly traded U.S. corporations are required to maintain an adequate system of internal controls. Corporate executives and boards of directors must ensure that these controls are both reliable and effective. Public Offering The transformation of going from a private to public requires some extensive planning and preparation. It is recommended that LJB‚ being a relatively
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| MANAGERIAL USE ANLYSIS | CASE STUDY 2 INTERNAL CONTROL | 12/1/2012 | Case Study 2 Internal Control . A requirement is important to know that all publicly traded U.S. corporations are required to maintain an adequate system of internal controls and procedures for financial reporting in accordance with the Sarbanes-Oxley Act Section 404. It is the responsibility of your executives to ensure there are dependable and effective controls in place‚ and auditors from outside the company
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Characteristics of an Effective System of Internal Control 1.) In accounting systems‚ certain controls are needed to ensure that employees are doing their jobs properly and ensure that the system runs properly. These checks are in the best interest of the organization. These controls come in the form of internal controls for the system. The internal controls are the checks that are placed in the system by the company’s own management to prevent the intentional misrepresentation of financial data
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of employees’ until different bank systems were introduced. With this in mind‚ the researcher would like to find out how effective the introduction of advanced technology is in the Bank’s internal control system by conducting a study on the “Effectiveness of Technological Advancement on the Internal Control of selected Commercial banks” in Metro Manila. The
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Checklist for Evaluating Internal Controls There are five components to internal controls. A comprehensive checklist should adequately define these components and ensure that each component has been adequately met. According to Louwers‚ Ramsay‚ Sinason‚ and Strawser (2007) the five components to internal controls include: 1. Control environment – Involves the tone of the organization and includes “the integrity‚ ethical values‚ and competence of the company’s people” (Louwers‚ Ramsay‚ Sinason
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The weakness in internal control over cash disbursements is that there is no numbers on the check. If there were numbers on the checks it will be easier to file in order and the number to the check will be the identity of the person and reason for the check for the company’s records. Dear Management‚ The internal control over cash disbursements need to be revised. To maintain‚ proper and organized documents each check written by this company will have a number on it. For the safety of our
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Bank of Nigeria reported that the backward development of Nigeria was attributable to weakness in the internal control systems of the banks. This has clearly pointed out the picture of how fraud is being penetrated in the financial strength of Nigerian banks. In a nut-shell ‚ the damage which the menace‚ called fraud has done to the banks is innumerable and needs urgent attention. Internal control are measures established by directors relating to the accounting systems in order to check if all transactions
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A review of the effectiveness of the accounting system and internal controls of Cookridge & Cookridge Carpets ltd with any recommendations for improvement. Submitted by: Rita Mezher AAT student membership number: 10417659 Date: This report is submitted for assessment of the AAT unit ‘Internal control and accounting system.’ TABLE OF CONTENT 1. Term of reference 2. Executive summary 3. Methodology 4. Introduction to Cookridge and Cookrigde Carpets Ltd 5. Analysis and evaluation
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