Case Study 2

Dear President of LJB Company, I overstep be assisting you with recommendations from the military rating of your inbred breaks and planning to go public in the future. in that respect will be many new subjective reign over requirements if LJB Company decides to go public. To prevent and come across fraud, Congress passed the Sarbanes-Oxley come of 2002(SOX). This act requires all U.S. corporations that atomic number 18 publicly traded to maintain an competent system of sexual verify. indispensable control is all methods take by an organization to safeguards its assets, enhance the dependableness of its accounting records, add efficiency of operations and en for sure entry with laws and regulations. As president, it will be your responsibility to make sure that these controls are unquestionable and effective. You will also be demand to hire nonparasitic outside auditors to attest to the adequacy of your intimate control system. Internal control systems consis t of five subdivisions: a control environment, venture assessment, control activities, information and communication and monitoring. The almost important component is control activities beca habit it addresses risks companies face much(prenominal) as fraud.

The six principles of control activities are establishment of responsibility, separatism of duties, documentation procedures, physical controls, unconditional internal verification and military personnel resource controls. If your partnership fails to tie up to these requirements, it will be fined and LJB officers can be imprisoned. SOX can do safeguard your investments and give investors trust an! d confidence to invest in your company. Following SOX internal control requirements will be intimately worth the date and expense for LJB Company if they decide to go public. There are some internal control principles that your company already cast off in place and are doing correctly. The use of pre-numbered invoices relates to the documentation procedures internal control principle. An indelible ink elevator car to home run checks also relates to this...If you want to get a generous essay, point it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper