INTERNAL CONTROL (Case Study 2) 1. Introduction As President of LJB Company is looking to go public by bringing internal controls system which is as one of the most challenging corporate governance issues because internal control involves everything that controls risks to an organization. Our accounting department has been chosen to evaluate the internal controls of LJB Company. LJB Company is planning to be a publicly traded company in the near future. Our firm needs to evaluate the internal
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Case Study 2—Internal Control Due by Sunday of Week 5, 11:59 p.m., mountain time 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
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Case Study 2—Internal Control Due by Sunday of Week 5, 11:59 p.m., Mountain time 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
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Case Study 2—Internal Control Due by Sunday of Week 5, 11:59 p.m., Mountain time 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
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Session 5 Case Study #2 ACCT 504 Michael J. Norton Keller Graduate School Professor Gabriel Hicks August 3, 2014 To be able to reflect on the internal controls for LJB Company that need to be in place prior to the company going public, I will ask and answer three questions. I will detail these in the following ways. First, is there a need for improved or new internal controls? Second, what actions are not in compliance? Lastly, what company practices are in compliance
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Case Study 2 -Internal Control Due by Sunday of week 5, 11:59PM, Mountain Time 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
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time 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
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Contents Internal Control Requirements………………………………………………….3 Bank Reconciliation…………………………………………………………………..4 Pre Numbered Invoices……………………………………………………………..4 Pay Checks………………………………………………………………………………..4 Indelible Machine……………………………………………………………………..4 Purchasing and Paying for Supplies…………………………………………..4 Human Resources……………………………………………………………………..4 Petty Cash…………………………………………………………………………………5 Assign Passwords………………………………………………………………………5 Review and Evaluation of Internal Controls………………………………6
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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
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Week 5: Case Study 2 Internal Control To: President of LJB Company, Thank you for selecting our firm to provide your company with an evaluation of your organizations internal control system. Internal control systems are vital in securing your organizations assets, it will limit the risk of fraud as well as misuse of your assets. Comprehending how to separate duties among your employees will aid in improving transparency as well as keep your company financially strong. Before the company
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