LJB Company Internal Controls
Elizabeth Berard Rojas
DeVry University
Instructor: Haddad, Tanya
10/04/11

Overview
Internal controls deal with the safe guarding of the company’s assets and improve the accuracy and reliability of accounting information. Some issues that the president of the company would need to know if he goes public are the privacy of the company which would be a very important way to begin when dealing with internal controls. Internal control issues should be done in the business place and not in public places like in restaurants. It should not be talked to with any person, instead it should be discussed with people that are responsible for the control issues and have experience in that field. They should also have signed a contract, which assures that everything that has been discussed in the company should not be discussed with any other company or personnel.
The President of LJB Company has requested a review and elevation of the internal control systems because of the company’s plan to go public. Because of this, I have gained access to information required to better service the company. The following are my findings and suggestions for adjustments.
Facts/Findings
The company should have separation of duties, in this case an accountant that deals as the Controller and Treasurer should not be dealing with more than one job to prevent fraud; since the accountant has been performing the purchases and pays for the supplies he has a greater chance to steal the products, or write himself a check. Another area that the company needs is proper authorization to better deal with petty cash and also to be able to purchase items with the petty cash only specific employees should be able to perform the purchases with petty cash and it should have the proper signatures from a manager. Another area that you can best use to prevent