Fi504 Course Project 2

FI504 Accounting and Finance Case Study #2 paygrade of Internal Controls caution Mr. President, The Sarbanes-Oxley knead of 2002 is a United States federal law which sets crude or enhanced standards for all U.S. semi familiar companies. The reason that this Sarbanes-Oxley Act of 2002 bill was created was because of a number of major corporate and accounting system scandals. When these scandals occurred they cost investors billions in losses because the shargon prices fell it move public confidence in our securities markets. That is why it is important to surveil with the Sarbanes-Oxley Act of 2002 requirements. This means that LJB would be required to maintain a system of indwelling harbor. The controls moldiness be reliable and effective, which the executive directors and plank of Directors must monitor. Also, an outside hearer must confirm that the control systems are sufficient. The annual explanation must include an affidavit report from a registered pu blic accounting firm. Failure to travel along with the standards of SOX subjects LJB Company, along with the executive officers and board of directors to severe penalties of fines and imprisonment.

The five principles of internal control are the following: * Establishment of Responsibility * Segregation of Duties * backup Procedures * carnal Controls * Independent Internal Verification * Human Resource Controls The ascendances decision to start using pre-numbered invoices is an important serving of the Documentation Procedures of Internal Control. Pre-numbered documents helps to ensure a transact ion has non been omitted, as well as ensuri! ng that the transaction has not been draw up down more than once. We recommend the use of indelible sign to grade checks, which is a form of physical control a great deal want the accountants decision to lock the checks in a safe over the weekend. Using indelible ink prevents the checks from macrocosm easily altered, which contributes to stronger internal controls. One is...If you want to procure a full essay, order it on our website: BestEssayCheap.com

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