Case Study 3 Fi504

Here are my comments for the President of LBJ: Impact of going public.   globe companies, as the result of the passing of Sarbanes Oxley Act of 2002, are necessary to document their controls, bear witness the documented controls and develop their impertinent auditors test their testing of controls and write a report approximately the metier of controls surrounding financial reporting.  So, at that place prevail 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, fasten up out of work checks, having two managers approve newly hires, and completing a verify reconciliation are outdo practices and I encourage you to receive with these procedures.   Weak practices and recommendations. There are a number of practices, however, that mold you v ulnerable to errors, both lettered (fraud) and unintentional (mistakes). Segregation of duties:  Employees that direct funds should not be involved in the depose reconciliation or invoices.  Employees responsible 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 vibration so that one person cannot send a dissimulator transaction or remove silver or purchased assets without it being noticed by another.   Access to assets:   each(prenominal) in all employees should not have acce ss to petty silver.  The cash should be l! ocked and those with a key should ensure proper documentation for cash distributed to be sure it is authorized. Indelible ink machine:   conceit your own checks is fine as long as you handling pre-numbered check stock paper to write the checks.  Otherwise you volition not know that you have accounted for every check written. sledding paychecks in office:  Checks should be locked until distributed to assure confidentiality and security. Background...If you want to get a line a full essay, order it on our website: OrderCustomPaper.com

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