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
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principles (GAAP). An additional session before substantive testing occurs would be implemented to address issues that may have arisen during test of controls. Issues such as
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contacted and hold training session for employees * Glitches * I: inaccurate reporting, create room for error * R: Contact the company again and get them back and give them responsibility to fix the glitches 2. Identify Control Issues: * Understaffing people are overworked, may get sloppy * R: Hire more staff * Lack of segregation of duties, bookkeeper does the bank rec and A/R ledger * R: Get someone else to do one of those duties * Mismatch
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for that period of time. However, an auditor cannot provide an absolute assurance due to the inherent limitations of an audit. Generally, an audit includes the following steps: overall audit planning, assess control risk, perform tests of controls, perform substantive tests of account balances, and finally complete the audit (Kerr, Elder and Arens). In the overall audit planning stage, the CPA has to obtain an understanding of the potential client’s business and establish if the CPA Firm and
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Preparing LJB’s Internal Control Reporting for Public Trading LJB System of Internal Controls Case Study February 5, 2012 Prepared by Background LJB Company, a small local distributor business that realizes in order to go public in the future, the company must be in compliance of the law and may need to adopt stronger internal control principles. At the President’s request, an independent internal assessment of internal controls was conducted to evaluate areas of strength and weakness
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following questions: |Compare a review and an audit. What are the differences? What are the similarities? | |The accounting information is the target of the audit. It is a measure to check internal control and financial reporting of the company. | |This entails a plan of action and systematic steps to consistently audit a business. The audit is an objective process of evaluating the | |statements the company makes about its economic condition
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by asking for reviews from the predecessor audit firm in order to identify any problems they faced and to incorporate appropriate actions in order to minimize those risks. Ms. Drew should start off by initially accessing the controls of the activity reports. If the controls are strong and the data could not be manipulated, then it can be presumed that the data is accurate if this is not the case, then Ms. Drew should take up the services of a professional to figure out a way and if it is still not
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limited liability partnership company (LLC). Being incorporated as LLC will protect the owners from double taxation and issues of personal responsibility (Peggy Wood, 2011). If the company fails to succeed, the creditors will not have the right to control the investor's particular asset, or they will not be liable for more than their personal investments in the company and the investors will be treated as shareholders. The majority owner Eyassu Semegn will contribute to the business venture from
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ZZZZ Best Company, Inc. Shiqi Hu, Lin Ding, Trang Mai, Yi Wang ACCT3309 Audit, O’Hara 11/03/2014 Background Barry Minkow, who is a young entrepreneur with history of credit card fraud as a teenager, was convicted on 57 counts of securities fraud. He started ZZZZ Best Company in carpet cleaning business in 1982 when he was only 16 years old. ZZZZ Best Company was turned into insurance restoration business that Minkow recognized the benefits with his own “innovative” way to finance his business
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LBJ: SOON TO BE A PUBLIC COMPANY A Guide To Internal Control Table of Contents 1. Introduction 2. Internal Control Standards 3. LBJ’s Successes 4. LBJ’s Opportunities For Improvement 5. Conclusion Introduction This is a report for the LBJ Company to better assist with the needs of internal control. Our findings are based off of what has been shared with us by the company president on how LBJ Company operates on a day to day basis. It does seem
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