Case Study 2

1. Inform the hot seat of both(prenominal) new versed accord requirements if the company decides to go public. (7 points) Internal controls are mechanisms, policies, and procedures used to lessen and monitor operational risks. In order to deter employees from committing a dishonest or fraudulent act the controls must be thorough and comprehensive. However, internal controls by themselves are non enough. They will be effective only if they are reinforced by the assent unions culture, policies and procedures, information systems, training, and supervision of staff. The first objectives of internal controls are to: ? Safeguard assets and member savings; ? assure the ability and effectiveness of the operations; ? Assure the reliability and completeness of fiscal and counsel information; ? Prevent fraud and mistakes; and ? Ensure that conformism with relevant laws and regulations. Internal controls can be broke shovel in into two categories- story and administrative controls. These two categories are non mutu every last(predicate)y exclusive; some of the procedures and records involved in accounting control also apply to administrative control. 2.

Advise the chairman of what the company is doing right (they are doing some things well) and also externalise to the President whether or not they should buy the indelible point out machine. When you advise the President, please be sure to reference the applicable internal control principle that applies. (13 points) . I will equivalent to applaud you, The President of LJB Company, for wanting to be aware of any n ew regulations required of your company if y! ou decide to go public. On behalf of the company you explained the current system of internal controls to your colleague. I guess it is incredibly important that you have an accountant who serves as financial officer and Controller which streamlines many of their processes. And in this dual role, he purchases all of the supplies and pays for these purchases. He also receives the...If you want to get a ripe essay, order it on our website: OrderCustomPaper.com

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