Case Study 2

Dear President of LJB Company, I depict be assisting you with recommendations from the valuation of your indwelling breaks and planning to go public in the future. in that respect will be many new innate reign over requirements if LJB Company decides to go public. To prevent and come upon fraud, Congress passed the Sarbanes-Oxley come of 2002(SOX). This act requires all U.S. corporations that are in public traded to maintain an competent system of privileged check up on. indispensable control is all methods take by an organization to safeguards its assets, enhance the reliableness of its accounting records, add efficiency of operations and en incontestable conformance 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 required to hire nonparasitic outside auditors to attest to the adequacy of your national control system. Internal control systems consist of five subdivisions: a control environment, venture assessment, control activities, information and communication and monitoring. The or so important component is control activities beca habit it addresses risks companies face such as fraud.

The six principles of control activities are establishment of responsibility, requisition of duties, documentation procedures, physical controls, unconditional internal verification and homo 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 and confidence to invest in your comp! any. Following SOX internal control requirements will be intimately worth the clock time and expense for LJB Company if they decide to go public. There are some internal control principles that your company already deliver 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 marker checks also relates to this...If you want to get a generous essay, ready it on our website: OrderCustomPaper.com

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