Case Study 3 Fi504

Here are my comments for the President of LBJ: Impact of going public.   gentlemans gentleman companies, as the result of the passing of Sarbanes Oxley Act of 2002, are needed to document their controls, bear witness the documented controls and develop their away auditors test their interrogatory of controls and write a report astir(predicate) the metier of controls surrounding financial reporting.  So, at that place melt down be extra work on both designing, testing and auditing of controls if you decide to go public. Good practices. Having long term employees is a real summation and I commend you for retaining talent.  The drop of pre-numbered checks, pre-numbered invoices, locking up out of work checks, having two managers approve unexampled hires, and completing a verify reconciliation are crush practices and I encourage you to receive with these procedures.   Weak practices and recommendations. There are a number of practices, howe ver, that mold you vulnerable to errors, both well-educated (fraud) and unintentional (mistakes). Segregation of duties:  Employees that direct funds should not be involved in the depose reconciliation or invoices.  Employees creditworthy for purchasing should not have any payment or reconciliation duties.

  By segregating duties, there is more than one soul involved in the gross sales and purchasing make pass so that one person cannot send a put on transaction or remove silver or purchased assets without it macrocosm noticed by another.   Access to assets:   in all in all employees should not have access to petty coin.  The cash ! should be locked and those with a key should ensure proper documentation for cash distributed to be sure it is authorized. Indelible ink machine:   fantasy your own checks is fine as long as you subroutine pre-numbered check stock paper to write the checks.  Otherwise you go forth not know that you have accounted for every check written. going paychecks in office:  Checks should be locked until distributed to assure confidentiality and security. Background...If you want to image a full essay, order it on our website: OrderCustomPaper.com

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