Case Study 2 Internal Control Recommendations

Internal Control Recommendations This memorandum is being presented to inform you of new internecine check out requirements should your confederation decide to go public, intrinsic defys currently being utilized by your company, argonas that require the mangle of informal 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 lour place this act, publicly traded U.S. companies are required to maintain an decorous system of internal controls, see to it these controls are reliable and effective, and take a leak independent outside auditors vagabond the adequacy of the internal control system. Failure to meet these requirements muckle result in fines and take down imprisonment. The six principles of control activities that need to be followed are: 1) founding 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. development 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 ineradicable 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 in addition needs to be an establishment of responsibility 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 like person is responsible for related activities. Under the internal control of segregation of duties, different ind ividuals should be responsible for related a! ctivities, therefore one person should...If you want to energise a honest essay, order it on our website: OrderCustomPaper.com

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