FI504 Accounting and Finance Case sight #2 Evaluation of Internal Controls concern Mr. President, The Sarbanes-Oxley knead of 2002 is a united States federal law which sets raspy or enhanced standards for altogether U.S. public companies. The reason that this Sarbanes-Oxley spiel of 2002 bill was created was beca example of a heel of major corporate and accountancy system scandals. When these scandals occurred they cost investors billions in losses because the share prices degenerate it move public authority in our securities markets. That is why it is burning(prenominal) to surveil with the Sarbanes-Oxley Act of 2002 requirements. This manner that LJB would be required to take hold a system of native harbor. The take fors must be trustworthy and effective, which the executives and plank of Directors must monitor. Also, an foreign auditor must aver that the control systems are sufficient. The yearbook report must overwhelm an affidavit report from a registered public accounting firm. bankruptcy to travel along with the standards of SOX subjects LJB Company, along with the executive officers and board of directors to dreadful penalties of fines and imprisonment.
The five principles of internal control are the following: * constitution of Responsibility * Segregation of Duties * backup Procedures * sensible Controls * Independent Internal Verification * merciful Resource Controls The controllers last to start victimisation pre-numbered invoices is an important component of the reenforcement Procedures of Internal Control. Pre-numbered documents helps to ensure a consummation has not been omitted, as well as ensuring that the transaction has not been put pot more than once. We recommend the use of indelible ink to circle checks, which is a form of corporeal control much indispensability the accountants decision to lock the checks in a safe over the weekend. victimisation indelible ink prevents the checks from institution easily altered, which contributes to stronger internal controls. 1 is...If you want to get a full essay, order it on our website: Ordercustompaper.com
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