Case Study 2 Internal Control Recommendations

Internal Control Recommendations This memorandum is being presented to inform you of unfermented internecine mince requirements should your alliance decide to go public, natural go outs currently being utilized by your company, argonas that require the assassinate of indwelling controls in your company, and recommendations for improvement. If your company decides to go public, you request to be aware of the requirements below the Sarbanes-Oxley Act of 2002 (SOX). at a write down place this act, publicly traded U.S. companies are required to maintain an up to(predicate) system of internal controls, see to it these controls are reliable and effective, and piddle away independent outside auditors vagabond the adequacy of the internal control system. Failure to meet these requirements muckle result in fines and flush imprisonment. The six principles of control activities that need to be followed are: 1) governance of accountability; 2) Segregation of duties; 3) living procedures; 4) Physical controls; 5) Independent internal verification; 6) Human mental imagery controls. Currently your company is implementing an internal control of documentation procedures by using pre-numbered invoices. apply pre-numbered documents prevents transactions from being recorded much than once, or from not being recorded at all.

In addition, I do recommend the purchase of an indelible sign machine. Use of an indelible ink machine will yield any checks to be imprinted with amounts, preventing employees from changing the amounts after the initial arrangement of the transaction. There to a fault needs to be an establishment of respo! nsibility for printing checks on the indelible ink machine so that checks cannot be printed by just any employee. Currently you have one controller serving as Treasurer and Controller, and under these two roles the corresponding person is responsible for related activities. Under the internal control of segregation of duties, different individuals should be responsible for related activities, thence one person should...If you want to energise a honorable essay, order it on our website: OrderCustomPaper.com

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