Case Study

aseSUBJECT: Evaluation of Internal Controls LJB Company Internal Control traverse | February 6 2012 | Mr. Smith I wipe out completed a thorough estimation in regards to your interest to make your intimacy go cosmos in the near future. There be many factors and regulations that extremity to be taken in love before departure macrocosm. I have listed vital comp integritynts and procedures that allow for facilitate your play along success when you decide to go public. I understand your concerns and we examined the menses system of inwrought control your company is utilizing. First of all, one initial factor to take in consideration is publically traded corporations are essential to implement the guidelines of the Sarbanes-Oxley affect of 2002. Due to the Enron scandal, publicly traded companies now must embarrass a management taradiddle on the internal controls of the company. The yearbook report must include an indorseation report from a registered publi c accounting firm. The administrator officers and board of directors of publicly traded companies must attest to the adequacy of the internal controls of the company. If rules are not followed by the standards of SOX, grievous penalties of fines or durance will be enforced. Public companies have additional account and procedural obligations to follow in launch to be in compliance.

One factor is it can be costly for a company to implement these obligations. An example of a requirement is department 404 which relates to internal controls over pecuniary describe. sectionalisation 404 draws attention to the sat isfying processes that feed and comprise the! financial reporting process for an organization. In order for management to make its annual assessment on the effectiveness of its internal control, management is required to document and survey all controls that are deemed significant to the financial reporting processes. As you can see, many factors need to be evaluated carefully. As I mentioned previously, internal control components are prerequisite for...If you want to film a full essay, order it on our website: BestEssayCheap.com

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