Fi504

Attn: President of LBJ keep company In high society for this company to go public they allow for impart to follow the guidelines for internal attend driven by the Sarbanes-Oxley Act of 2002. The principles of internal pull strings ar: establishment of responsibility; segregation of duties; financial backing procedures; physical controls; commutative internal veri?cation; and human re tooth root controls.These bequeath be the guidelines you will have to use in order for your company to go public. The use of these components are designed to reduce snake oil and comfort your company. The company is doing well with pre numbering of invoices it helps to keep track of expenses. I do recommend that the indelible ink machine be purchased and used to print the checks. This will keep down fraud and forgery. Which is recommended under the the Control Activities called Voucher System Controls. This also follows the documentation procedures. These procedures suggest to use pre numbered invoices which helps prevent a transaction from be recorded more than once and/or not organism recorded at all. Using pre numbered invoices is a great source document for the accountants and helps to ensure timely recording of these transactions. This will manufacture the company?s books more accurate and reliable.



Since there is solitary(prenominal) one accountant that handles the pay checks that abides to Establishment of Responsibility and put the checks in a safe follows the Physical Control guideline. The company will have to hire more employees. The company cannot have one accountant that serves as both the Treasurer and the command and receives the checks and completes the monthly reconciliation. This is not in accordance with the internal control guidelines set by the Sarbanes-Oxley Act of 2002 for public companies. The company will have to implement a segregation of duties. The same employee cannot be responsible for related activities. The company will have to set up a system that enables one employee to check the diddle of another. I recommend...If you want to get a full essay, order it on our website: Orderessay



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