Case Study

aseSUBJECT: Evaluation of Internal Controls LJB Company Internal Control flat solid | February 6 2012 | Mr. Smith I stand completed a thorough estimation in regards to your interest to make your connector go cosmos in the near future. There are many factors and regulations that extremity to be taken in friendship before departure human beings. I have listed vital comp integritynts and procedures that lead facilitate your social club 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 need to implement the guidelines of the Sarbanes-Oxley second of 2002. Due to the Enron scandal, publicly traded companies now must embarrass a management notify on the internal controls of the company. The annual report must include an proveation report from a registered public accou nting 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, grueling penalties of fines or durance will be enforced. Public companies have additional account and procedural obligations to follow in parliamentary law 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 monetary account. plane section 404 draws attention to the sati sfying 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 obligatory for...If you want to film a full essay, order it on our website: BestEssayCheap.com

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