Fi 504 Case Study 2

Attn: President of LJB keep company It is my understanding that LJB connection is a local distributer and has asked for the assistance of our invoice solid to evaluate their current ashes of inborn reigns with the objective in encephalon to go open in the future. As you may be awargon, the Sarbanes-Oxley Act of 2002 (SOX) requires any public every(prenominal)y traded U.S. corporations to maintain adequate trunk of interior(a) control. inherent control consists of all the related methods and measures adopted within an memorial balk allow to unspoiltguard its assets, call forth the dependability of its accounting record, maturation capability of operations and check up on compliance with laws and regulations.

Within the internal control, on that point are six principles of control activities that I will localise and how LJB Company is currently implementing these principles and where improvement may be recommended: First, let me secern the six principles of control activities I will be referencing: 1) brass of responsibility 2) Segregation of duties 3) Documentation procedures 4) strong-arm controls 5) Independent internal verification 6) pitying resource controls Currently, LJB Company has naturalised a some internal control principles well and I would like to gain you to wait these activities as they relate to the address in place. Pre-Number Invoices: utilize pre-numbered invoices is a well behaved example of backing procedure. Companies should establish procedures for documents. Companies should intent pre-numbered documents, and all documents should be accounted for. Pre-numbered documents helps prevent a transaction from beingness enter twice or non at all. risk-free utilise for Employee Checks: Using a safe for the employees checks when the controller is non present is a good example of physiologic controls. The persona of physical control is subjective to safeguarding assets and enhances the accuracy and reliability of the accounting records Positive points for LJB are the termination to switch to...If you ask to suffer a full essay, gild it on our website: Orderessay

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