Case Study 3 Fi504

Here be my comments for the President of LBJ: Impact of going public.   public companies, as the result of the passing of Sarbanes Oxley Act of 2002, are needful to document their controls, bear witness the documented controls and develop their remote auditors test their scrutiny of controls and write a report nearly the metier of controls surrounding financial reporting.  So, at that place plump 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 in the altogether hires, and completing a verify reconciliation are better(p) practices and I encourage you to receive with these procedures.   Weak practices and recommendations. There are a number of practices, however, that mold you vulnerable to errors, both intentional (fraud) and unintentional (mistakes). Segregation of duties:  Employees that direct funds should not be involved in the depose reconciliation or invoices.  Employees responsible for(p) 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 musical rhythm so that one person cannot send a circumvent transaction or remove silver or purchased assets without it organism noticed by another.   Access to assets:   altogether in all employees should not have access to petty property.  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:   video your own checks is fine as long as you hire pre-numbered check stock paper to write the checks.  Otherwise you willing not know that you have accounted for every check written. go forth paychecks in office:  Checks should be locked until distributed to assure confidentiality and security. Background...If you want to picture a full essay, order it on our website: OrderCustomPaper.com

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