Ljb Company Case - 1592 Words

External Consultation to LJB Company EXTERNAL CONSULTATION TO LJB COMPANY Abstract A paper presented on the case study 2 review of LJB Company. The paper will address growing issues of Sarbanes-Oxley compliance, and business ethics in regards to Corporate Social Responsibility (CSR) and adherence to current regulatory federal mandates. Paper presents tools for consideration for tomorrow’s leaders and gives a general overview of internal control strategies corporations take to limit legal responsibility in ethical/moral matters that include; matters of fraud mitigation, document retention, control activities, information/communication factors, monitoring, and assessing risk. This paper argues that†¦show more content†¦* Recommendation: Establish an Audit Committee to have oversight of accounting department. Findings reflect a lack of establishment of responsibility; including essential assignment of individuals that concludes an individual being responsible for a task, and another maintaining physical custody. This also includes the responsibilit y including authorizations and approval for transactions (Kimmel, Weygandt amp; Keiso, 2009). * Recommendation: Allow safe to be placed under physical control of an individual and independent person is identified to conduct physical security reports on the safe. The safe should be placed somewhere in which two individuals are required to access and lock, and record is maintained of access to the safe and checked by supervisor. Segregation is essential to the system of internal controls. Although LJB Company is streamlined for maximum efficiency some recommendations for segregation would be required prior to going public. * Recommendation: Allow for related activities to be assigned to different individuals such as receiving checks and conducting bank reconciliation. Physical custodyShow MoreRelatedLjb Company Case Study 21517 Words   |  7 Pages LJB COMPANY | Internal Control | REQUIREMENTS AND REVISIONS | Prepared To: LJB Company’s President Prepared By: Yenny Gutierrez6/03/2013 | TABLE OF CONTENTS Introduction New Internal Control Requirement 4 Establishment of responsibility 4 Segregation of duties 4 Documentation procedures 4 Physical controls 4 Independent internal verification 5 Human Resources controls 5 Reviewing LJB Internal Controls 5 Pre numbered invoices 5 Ink machineRead MoreLjb Company Essay943 Words   |  4 PagesLJB Company: Internal Controls LJB Company: Internal Controls Contents Introduction 3 Internal Control Requirements 2 Strengths and Recommendations 2 Violations 3 Conclusion 4 Works Cited 4 Introduction LJB Company has asked the accounting firm to evaluate their system of internal controls because of the plan to go public in the near future. The president wants to be aware of any new regulations required of his company if they go public. The current system of internal controlsRead MoreEssay Acct 504 Case Study 21016 Words   |  5 PagesAccounting 504 Case Study 2 Keller Graduate School of Management Prepared by: Samara Ellison Prepared for: Professor Hicks 3 April 2013 To: LJB Company President From: Samara Ellison, Accounting Firm Subject: Evaluation of LJB Company’s Internal Control Structures Date: 3 April 2013 Hello LJB Company President: First, I would like to thank you for hiring my accounting firm to evaluate LJB’s internal controls system. This report will inform you of any new internal control requirementsRead MoreInternal Controls Relating to the Bjb Company Essay1130 Words   |  5 PagesAll publicly trader companies in the USA are required to maintain and have an up to date system of internal controls. Since the LJB Company is wishing to become a public entity, I am glad to be able to assist in this action. First, the rules and regulations must be reviewed and compared to the company and how it can become public. To make the company attractive to buyers, investors, and other capital sources, it is crucial that the corporate organization and governance are well manifested. CorporateRead MoreEssay on Case Study 2 - Internal Control736 Words   |  3 PagesCase Study Two Name Accounting and Finance 02Feb2011 Dear President of LJB Company, (1) If the LJB Company should decide to become a publicly traded company, a few internal controls should be implemented to comply with the Sarbanes-Oxley Act (SOX). * Management will need to provide periodic quarterly reports to evaluate the effectiveness and reliability of LJB’s internal controls over financial reporting procedures. * Management should certify the accuracy and fairness of presentationRead MoreLjb Companys Internal Controls1608 Words   |  7 PagesCase Study 2: LJB Company’s Internal Controls Michael Del Toro FI504 - Accounting Abstract This paper shall focus on the criticalities involved in LJB’s transactions and how it may implement internal controls to the business processes while increasing the accountability of individuals involved in its ‘lean business process.’ With the advent of the Sarbanes-Oxley Act and its repercussions to the manner in which businesses must prevent fraud (both external and internal) to not misrepresent anyRead MoreEssay Acct 504 - Case Study Ii - Internal Controll1504 Words   |  7 PagesCase study II – Internal control Managerial Accounting and Finance – ACCT 504 Keller Graduate School of Management May 2013 Session Date of June 11, 2013 Table of Contents Introduction 1 Internal control rules and regulations requirements before going public 1 THE BAD – Things that the company does poorly 2 Recommendations to the President 4 Conclusion 6 Bibliography 7 Case study II – Internal control Introduction Internal control refers to methods, techniques and measuresRead MoreEssay on Internal Controls Case Study767 Words   |  4 Pages I was asked to give my recommendations on LJB Company’s internal control system before the company decides to go public in the future. Based on my review of the information that I have been given, the following are my recommendations for new internal controls: 1. Establishment of Responsibility 2. Segregation of Duties 3. Human Resources Control 4. Independent Internal Verification 5. Physical controls It is good to see that LJB recognizes the efforts of its long term employeesRead MoreAcct 504 Case Study 21024 Words   |  5 PagesPrepared for: The President of LJB Company October 5, 2014 Table of contents Introduction: _______________________________________________________________3 New internal control requirements: ______________________________________________3 What the company is doing right: _______________________________________________4 What the company is doing wrong: ______________________________________________5 Conclusion: ________________________________________________________________5 Read MoreAcct504 Case Study 21971 Words   |  8 PagesCase Study 2: Internal Control Table of Contents Introduction Part 1: Internal Control Requirements Part 2: What the Company is Doing Right Part 3: What the Company is Doing Wrong Conclusion Works Cited Introduction The LBJ Company is currently making a decision to go public or not and with that The LBJ Company will also need to become knowledgeable about their internal controls within their systems, specifically in regards to Accounting and also Human Resources and how it will affect