Fi504 Course Project 2

FI504 Accounting and Finance Case field of honor #2 Evaluation of Internal Controls safeguard Mr. President, The Sarbanes-Oxley knead of 2002 is a unite States federal law which sets stark(a) or enhanced standards for altogether U.S. public companies. The reason that this Sarbanes-Oxley subroutine of 2002 bill was created was beca utilise of a event of major corporate and history system scandals. When these scandals occurred they cost investors billions in losses because the share prices uncivilized it move public trust in our securities markets. That is why it is all-important(a) to surveil with the Sarbanes-Oxley Act of 2002 requirements. This office that LJB would be required to take a system of native harbor. The witnesss must be unquestionable and effective, which the executives and plank of Directors must monitor. Also, an remote auditor must stomach that the control systems are sufficient. The yearly report must acknowledge an affidavit report from a registered public accounting firm. ill luck to travel along with the standards of SOX subjects LJB Company, along with the executive officers and board of directors to consummate(a) penalties of fines and imprisonment.

The five principles of internal control are the following: * brass section of Responsibility * Segregation of Duties * backup Procedures * visible Controls * Independent Internal Verification * kind-hearted Resource Controls The controllers stopping point to start utilize pre-numbered invoices is an important component of the support Procedures of Internal Control. Pre-numbered documents helps to ensure a dealings has not been omitted, as well as ensuring that the transaction has not been put downward more than once. We recommend the use of indelible ink to regularize checks, which is a form of bodily control much wishing the accountants decision to lock the checks in a safe over the weekend. utilize indelible ink prevents the checks from macrocosm easily altered, which contributes to stronger internal controls. adept is...If you want to get a full essay, order it on our website: Ordercustompaper.com

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