Case Study 2- Internal Control

To the President of LJB: It is critical to note that going public is a phenomenal and transformational event for each smart set. However, before any hole-and-corner(a) caller-out makes the final decision to go public, there be important decisions that involve to be made; one of them existence the enforcement of proper inborn operate procedures. LJB will need to visit additional requirements and continuing obligations as a public company that may require new skills sets, additional resources and changes to the business (PricewaterhouseCoopers, 2010). This exclusively agency that the company require to implement internal vault measures that will satisfy the requirements of the Sarbanes-Oxley Act of 2002 (SOX) section 404 and meet the blanket(a) five interrelated internal control components. Mr. President, everyone at LJB take to downstairsstand the definition of internal control and what is required of them under the SOX fair play since this law requires a co mbined effort from take solicitude and employees alike. Internal control consists of all the related methods and measures adopt at heart an organization to safeguard its assets, enhance the accuracy and time-testedness of its accounting records, enlarge efficiency of operations, and ensure compliance with laws and regulations (Kimmel, Weygandt & Kieso, 2009, pp. 327-328).

In other words, potent internal control can ease companies achieve ceremonious pecuniary goals, prevent loss of resources, and constitute reliable monetary statements. Under SOX, all publicly traded U.S corporations be required to go along an adequate system of internal control by means of developing princi ples of control over financial reporting as ! well as continually corroborate that these controls are working. LJB needs to ensure that it corporate executives and boards of directors controls are reliable and effective. Additionally, independent outside auditors must attest to the adequacy of its internal control system. If for any reason, that the company is found to be...If you want to transmit a abundant essay, order it on our website: OrderEssay.net

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