Internal Control

Public companies argon required by regulations Sarbanes-Oxley Act of 2002 (SOX) to deem control procedures. Companies must develop principles of control everyplace financial reporting and continually verify that the controls are working. Companies will do surplus work on designing, testing and auditing of controls if they decide to go domain the new rules require management to disclose to the mankind any material weakness identified by management. The bon gross tons independent public control who audited the financial statements admit in the annual report has attested to and reported on managements evaluation of congenital control oer financial reporting. From my understanding, the following are common recommendations for new native controls: -Establishment of responsibility -Segregation of duties -Documentation procedures P -Physical, mechanical, and electronic controls I -Independent internal curb -Other controls Good practices LJB recognizes the effor ts of long term employees by recognise them with additional responsibilities. It shows that employees are valued. LJB has some physical controls to secure checks from organism mishandled or stolen. Example uses vaults and safety deposit boxes for cash and checks. also figurer facilities access with password.

Documentation procedures are used well. restrainer uses pre-numbered banknote for transactions and completing monthly bank satisfaction are best practices. Weak practices LJB has much work experiences, tho these influenced to you assimilate errors, both intentional (fraud) and unintentional (mist akes). Segregation of duties: The accoun! tant serves the roles of the treasurer and Controller, which is a violation of the Establishment of Responsibilities control. This control says that the employer is amenable for granted task is most effective. Segregation of Duties is also beingness profaned because the accountant has the responsibility of purchasing supplies and paying for the...If you motivation to dismount a full essay, order it on our website: OrderCustomPaper.com

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