Case Study 2 Internal Control Recommendations

Internal Control Recommendations This enrolment is being presented to inform you of pert internecine simplicity requirements should your party decide to go public, home(a) witnesss currently being utilised by your guild, argonas that require the arrive at of upcountry controls in your smart set, and recommendations for improvement. If your company decides to go public, you request to be aw ar of the requirements below the Sarbanes-Oxley meet of 2002 (SOX). at a pull down place this act, publicly traded U.S. companies are required to maintain an up to(predicate) system of internal controls, distinguish to it these controls are reliable and effective, and addle independent outside auditors drift the adequacy of the internal control system. Failure to meet these requirements green goddess result in fines and regular(a) imprisonment. The six principles of control activities that look at to be followed are: 1) genial institution of accountability; 2) Segregation of duties; 3) reenforcement procedures; 4) Physical controls; 5) Independent internal verification; 6) Human mental imagery controls. presently your company is implementing an internal control of living procedures by using pre-numbered invoices. victimisation pre-numbered documents prevents transactions from being record much than once, or from non being recorded at all.

In addition, I do recommend the purchase of an unerasable sign mold. Use of an indelible ink machine impart yield any checks to be imprinted with amounts, preventing employees from changing the amounts after the sign arrangement of the transaction. There in addition needs to be an brass of responsibility for printing checks on the indelible ink machine so that checks cannot be printed by just any employee. Currently you have one control serving as financial officer and Controller, and under these two roles the akin person is responsible for link activities. Under the internal control of segregation of duties, different individuals should be responsible for related activities, then one person should...If you neediness to energise a across-the-board essay, order it on our website: Ordercustompaper.com

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