...Internal Control for LJB Company Written by: Elson De Lemos Addressed to: The President of LJB Company August 08, 2013 Introduction 3 Internal Control Requirement 3 What LJB is Doing Right 5 Things to Improve and Recommendations 6 Conclusion 9 References 10 Introduction Mr. President as you have indicated you want to be informed about any new regulations required of your company in case you go public. This document will give you an overview of the Sarbanes-Oxley Act, of 2002 (SOX) that your company will be required to implement if you go public. I'll give detailed recommendations and instructions how to implement internal control principles in your organization. There are some additional factors that will be mentioned below in greater detail including compliance, and business ethics in regards to Corporate Social Responsibility. Also you will find out that the report includes a general overview of internal control strategies LJB Company should give consideration to; in order to limit legal responsibility in ethical/legal matters that include; matters of fraud mitigation, document retention, control activities, information/communication factors, monitoring, and assessing risk (Kimmel, 2013, p. 338). I also will advise you in what your company is doing right and instruct you in what your organization needs to improve. Internal Control Requirement As you might know all public companies must comply with the Sarbanes-Oxley Act, which...
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...GG Accounting Firm Control Analysis of LJB Company Prepared for: Harry Truman President, LJB Company 2300 Pennsylvania Ave. New York, NY Prepared By: Student Name CFO, GG Accounting Firm August 11, 2013 233 S Wacker Dr Chicago, IL 60606 Web:www.GGaccountingfirm.com │Tel 1-800-CON-TROL│ Email GGaccountingfirm@email.com Table of Contents Introduction ………………………………………………………………………………………………………………… 3 Internal Control ……………………..…………………………………………………………………………………... 4 Suggested Improvements to Internal Controls ..….………………………………………………………. 5-6 Conclusion …………………………………………………………………………………………………………………… 7 Works Cited …………………………………………………………………………………………………………………. 8 Introduction According to Paul D. Kimmel, “ Internal control consists of all the related methods and measures adopted within an organization to safeguard its assets, enhance the reliability of its accounting records, increase efficiency of operations, and ensure compliance with laws and regulations”(pg. 338). This report assists to detail observations and recommendations regarding the current internal controls of the LJB Company. In LJB plans to take the company public, GG Accounting Firm has measured LJB compliance under the Sarbanes-Oxley Act of 2002 (SOX) standards. GG Accounting Firm has addressed current practices and has made suggestions that could increase the LJB Companies chances in their endeavor. The internal control recommendations will be based on the six...
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... | |LJB Company | | | To whom to be submitted: Prof. Kim Chung By whom to be submitted: Md.Tanvir Apon Submission Date: 02/09/2014 Table of Contents |S/L. |Description |Page No. | |1. |Preface |3 | |2. |LGB Company: Internal Control Evaluation |4-6 | |3. |References |7 | Preface This appraisal is being offered to the president of the LJB Company as a recommendations for the modifications of IPO planning and internal control of this company since they are intended to go public in near future. By following a line of investigation contemporary regulations regarding publicly traded company, we hope to put in order for a smooth transition...
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... 8 Introduction This report is being presented as an assessment of the preparedness of the LJB Company to go public, and must first understand what and why successful internal controls are necessary. Internal control is a plan of organization and a system of procedures implemented by company management and the board of directors designed to accomplish the following five objectives: Safeguard assets- A company must safeguard its assets against waste, inefficiency, and fraud. Encourage employees to follow company policy- Everyone in an organization—managers and employees—needs to work toward the same goals. A proper system of controls provides clear policies that result in fair treatment of both customers and employees. Promote operational efficiency- Companies cannot afford to waste resources. They work hard to make a sale, and they don’t want to waste any of the benefits. Ensure accurate, reliable accounting records-Accurate records are essential. Without proper controls, records may be unreliable, making it impossible to tell which part of the business is profitable and which part needs improvement. A business could be losing money on every product it sells—unless it keeps accurate records for the cost of its products. Comply with legal requirements-Companies, like people, are subject to laws, such as those of regulatory agencies...
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...Executive Summary LJB Company, Internal Control Review B. Thayer ACCT-504 – March 2013 Table of Contents I. Sarbanes-Oxley Requirements II. Internal Controls – Correctly Implemented III. Internal Controls – Not Correctly Implemented IV. Conclusion The president of LJB Company, a local distributor, requested our company to evaluate their system of internal controls because they are planning to go public in the future. The President wants to be aware of any new regulations required of his company if they do go public. Understanding the rules and regulations which need to be followed is very important because if not followed the “potential penalties for altering documents can be up to 20 years in prison. In addition, anyone knowingly violating any provisions of Sarbanes-Oxley or SEC rules can be subject to a fine and up to 10 years in prison.” In order to go public all companies must follow the Sarbanes-Oxley requirements. These requirements were created and put into place “to protect shareholders and the general public from fraudulent practices and errors in accounting on multiple levels.” Listed below are the five requirements. 1. Disclosure Controls: It is the corporate responsibility of a company to implement a set of guidelines that will ensure proper financial disclosure. 2. Disclosure in Periodic Reports: References the off-balance sheet items that could possibly be used in a fraudulent manner. This section stipulates...
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...ACCT 504 Week 5 Case Study 2 Internal Control LJB Company Click Link Below To Buy: http://hwcampus.com/shop/acct-504/acct-504-week-5-case-study-2-internal-control-ljb-company/ Or Visit www.hwcampus.com Case Study 2 – Internal Control- Due by Sunday of week 5 LJB Company, a local distributor, has asked your accounting firm to evaluate their system of internal controls because they are planning to go public in the future. The President wants to be aware of any new regulations required of his company if they go public so he met with a colleague of yours at a local restaurant. The President of the company explained the current system of internal controls to your colleague. Your colleague has since been promoted to a tax position so she has passed on the information below so you can generate recommendations for the partner at your accounting firm to share with the President of LJB Company. Since LJB Company is a relatively lean organization, they have a lot of faith in their long-term employees. They have one accountant who serves as Treasurer and Controller which streamlines many of their processes. In this dual role, he purchases all of the supplies and pays for these purchases. He also receives the checks and completes the monthly bank reconciliation. The accountant is so busy that the company handles petty cash a bit differently. All employees have access to the petty cash in a desk drawer and are asked to only place a note if they use any of the cash. The accountant...
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...ACCT 504 Week 5 Case Study 2 Internal Control LJB Company Click Link Below To Buy: http://hwcampus.com/shop/acct-504/acct-504-week-5-case-study-2-internal-control-ljb-company/ Or Visit www.hwcampus.com Case Study 2 – Internal Control- Due by Sunday of week 5 LJB Company, a local distributor, has asked your accounting firm to evaluate their system of internal controls because they are planning to go public in the future. The President wants to be aware of any new regulations required of his company if they go public so he met with a colleague of yours at a local restaurant. The President of the company explained the current system of internal controls to your colleague. Your colleague has since been promoted to a tax position so she has passed on the information below so you can generate recommendations for the partner at your accounting firm to share with the President of LJB Company. Since LJB Company is a relatively lean organization, they have a lot of faith in their long-term employees. They have one accountant who serves as Treasurer and Controller which streamlines many of their processes. In this dual role, he purchases all of the supplies and pays for these purchases. He also receives the checks and completes the monthly bank reconciliation. The accountant is so busy that the company handles petty cash a bit differently. All employees have access to the petty cash in a desk drawer and are asked to only place a note if they use any of the cash. The accountant...
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...ACCT 504 Week 5 Case Study 2 Internal Control LJB Company Click Link Below To Buy: http://hwcampus.com/shop/acct-504/acct-504-week-5-case-study-2-internal-control-ljb-company/ Or Visit www.hwcampus.com Case Study 2 – Internal Control- Due by Sunday of week 5 LJB Company, a local distributor, has asked your accounting firm to evaluate their system of internal controls because they are planning to go public in the future. The President wants to be aware of any new regulations required of his company if they go public so he met with a colleague of yours at a local restaurant. The President of the company explained the current system of internal controls to your colleague. Your colleague has since been promoted to a tax position so she has passed on the information below so you can generate recommendations for the partner at your accounting firm to share with the President of LJB Company. Since LJB Company is a relatively lean organization, they have a lot of faith in their long-term employees. They have one accountant who serves as Treasurer and Controller which streamlines many of their processes. In this dual role, he purchases all of the supplies and pays for these purchases. He also receives the checks and completes the monthly bank reconciliation. The accountant is so busy that the company handles petty cash a bit differently. All employees have access to the petty cash in a desk drawer and are asked to only place a note if they use any of the cash. The accountant...
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...ACCT-504 Week 5 Case Study 2 Internal Control – LJB Company Click Link Below To Buy: http://hwcampus.com/shop/acct-504/acct-504-week-5-case-study-2-internal-control-ljb-company/ Or Visit www.hwcampus.com Case Study 2 – Internal Control- Due by Sunday of week 5 LJB Company, a local distributor, has asked your accounting firm to evaluate their system of internal controls because they are planning to go public in the future. The President wants to be aware of any new regulations required of his company if they go public so he met with a colleague of yours at a local restaurant. The President of the company explained the current system of internal controls to your colleague. Your colleague has since been promoted to a tax position so she has passed on the information below so you can generate recommendations for the partner at your accounting firm to share with the President of LJB Company. Since LJB Company is a relatively lean organization, they have a lot of faith in their long-term employees. They have one accountant who serves as Treasurer and Controller which streamlines many of their processes. In this dual role, he purchases all of the supplies and pays for these purchases. He also receives the checks and completes the monthly bank reconciliation. The accountant is so busy that the company handles petty cash a bit differently. All employees have access to the petty cash in a desk drawer and are asked to only place a note if they use any of the cash. The accountant...
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...ACCT 504 Week 5 Case Study 2 Internal Control - LJB Company Click Link Below To Purchase or visit homework-aid.com : http://homework-aid.com/ACCT-504-Week-5-Case-Study-2-Internal-Control-LJB-Company-1804.htm?categoryId=-1 Case Study 2 - Internal Control- Due by Sunday of week 5 LJB Company, a local distributor, has asked your accounting firm to evaluate their system of internal controls because they are planning to go public in the future. The President wants to be aware of any new regulations required of his company if they go public so he met with a colleague of yours at a local restaurant. The President of the company explained the current system of internal controls to your colleague. Your colleague has since been promoted to a tax position so she has passed on the information below so you can generate recommendations for the partner at your accounting firm to share with the President of LJB Company. Since LJB Company is a relatively lean organization, they have a lot of faith in their long-term employees. They have one accountant who serves as Treasurer and Controller which streamlines many of their processes. In this dual role, he purchases all of the supplies and pays for these purchases. He also receives the checks and completes the monthly bank reconciliation. The accountant is so busy that the company handles petty cash a bit differently. All employees have access to the petty cash in a desk drawer and are asked to only place a note if they use any...
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...ACCT 504 Week 5 Case Study 2 Internal Control - LJB Company Click Link Below To Purchase or visit homework-aid.com : http://homework-aid.com/ACCT-504-Week-5-Case-Study-2-Internal-Control-LJB-Company-1804.htm?categoryId=-1 Case Study 2 - Internal Control- Due by Sunday of week 5 LJB Company, a local distributor, has asked your accounting firm to evaluate their system of internal controls because they are planning to go public in the future. The President wants to be aware of any new regulations required of his company if they go public so he met with a colleague of yours at a local restaurant. The President of the company explained the current system of internal controls to your colleague. Your colleague has since been promoted to a tax position so she has passed on the information below so you can generate recommendations for the partner at your accounting firm to share with the President of LJB Company. Since LJB Company is a relatively lean organization, they have a lot of faith in their long-term employees. They have one accountant who serves as Treasurer and Controller which streamlines many of their processes. In this dual role, he purchases all of the supplies and pays for these purchases. He also receives the checks and completes the monthly bank reconciliation. The accountant is so busy that the company handles petty cash a bit differently. All employees have access to the petty cash in a desk drawer and are asked to only place a note if they use any...
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...A++PAPER;http://www.homeworkproviders.com/shop/acct-504-week-5-case-study-2-internal-control-ljb-company/ ACCT 504 WEEK 5 CASE STUDY 2 INTERNAL CONTROL – LJB COMPANY PRODUCT DESCRIPTION Case Study 2 – Internal Control- Due by Sunday of week 5 LJB Company, a local distributor, has asked your accounting firm to evaluate their system of internal controls because they are planning to go public in the future. The President wants to be aware of any new regulations required of his company if they go public so he met with a colleague of yours at a local restaurant. The President of the company explained the current system of internal controls to your colleague. Your colleague has since been promoted to a tax position so she has passed on the information below so you can generate recommendations for the partner at your accounting firm to share with the President of LJB Company. Since LJB Company is a relatively lean organization, they have a lot of faith in their long-term employees. They have one accountant who serves as Treasurer and Controller which streamlines many of their processes. In this dual role, he purchases all of the supplies and pays for these purchases. He also receives the checks and completes the monthly bank reconciliation. The accountant is so busy that the company handles petty cash a bit differently. All employees have access to the petty cash in a desk drawer and are asked to only place a note if they use any of the cash. The accountant has...
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...ACCT 504 Week 5 Case Study 2 Internal Control LJB Company Click Link Below To Buy: http://hwcampus.com/shop/acct-504/acct-504-week-5-case-study-2-internal-control-ljb-company/ Or Visit www.hwcampus.com Case Study 2 – Internal Control- Due by Sunday of week 5 LJB Company, a local distributor, has asked your accounting firm to evaluate their system of internal controls because they are planning to go public in the future. The President wants to be aware of any new regulations required of his company if they go public so he met with a colleague of yours at a local restaurant. The President of the company explained the current system of internal controls to your colleague. Your colleague has since been promoted to a tax position so she has passed on the information below so you can generate recommendations for the partner at your accounting firm to share with the President of LJB Company. Since LJB Company is a relatively lean organization, they have a lot of faith in their long-term employees. They have one accountant who serves as Treasurer and Controller which streamlines many of their processes. In this dual role, he purchases all of the supplies and pays for these purchases. He also receives the checks and completes the monthly bank reconciliation. The accountant is so busy that the company handles petty cash a bit differently. All employees have access to the petty cash in a desk drawer and are asked to only place a note if they use any of the cash. The accountant...
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...ACCT 504 Week 5 Case Study 2 Internal Control LJB Company Click Link Below To Buy: http://hwcampus.com/shop/acct-504/acct-504-week-5-case-study-2-internal-control-ljb-company/ Or Visit www.hwcampus.com Case Study 2 – Internal Control- Due by Sunday of week 5 LJB Company, a local distributor, has asked your accounting firm to evaluate their system of internal controls because they are planning to go public in the future. The President wants to be aware of any new regulations required of his company if they go public so he met with a colleague of yours at a local restaurant. The President of the company explained the current system of internal controls to your colleague. Your colleague has since been promoted to a tax position so she has passed on the information below so you can generate recommendations for the partner at your accounting firm to share with the President of LJB Company. Since LJB Company is a relatively lean organization, they have a lot of faith in their long-term employees. They have one accountant who serves as Treasurer and Controller which streamlines many of their processes. In this dual role, he purchases all of the supplies and pays for these purchases. He also receives the checks and completes the monthly bank reconciliation. The accountant is so busy that the company handles petty cash a bit differently. All employees have access to the petty cash in a desk drawer and are asked to only place a note if they use any of the cash. The accountant...
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...ACCT 504 Week 5 Case Study 2 Internal Control - LJB Company Click Link Below To Purchase or visit homework-aid.com : http://homework-aid.com/ACCT-504-Week-5-Case-Study-2-Internal-Control-LJB-Company-1804.htm?categoryId=-1 Case Study 2 - Internal Control- Due by Sunday of week 5 LJB Company, a local distributor, has asked your accounting firm to evaluate their system of internal controls because they are planning to go public in the future. The President wants to be aware of any new regulations required of his company if they go public so he met with a colleague of yours at a local restaurant. The President of the company explained the current system of internal controls to your colleague. Your colleague has since been promoted to a tax position so she has passed on the information below so you can generate recommendations for the partner at your accounting firm to share with the President of LJB Company. Since LJB Company is a relatively lean organization, they have a lot of faith in their long-term employees. They have one accountant who serves as Treasurer and Controller which streamlines many of their processes. In this dual role, he purchases all of the supplies and pays for these purchases. He also receives the checks and completes the monthly bank reconciliation. The accountant is so busy that the company handles petty cash a bit differently. All employees have access to the petty cash in a desk drawer and are asked to only place a note if they use any...
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