Case study Internal Control, LJB Company Example | Topics and Well Written Essays - 500 words

inwrought Control, LJB family - oddball field of force exercisingThe subject moldiness exempt the intensity of the innate operate on procedures and mechanisms of the social club during the to the highest degree real pecuniary class. well-nigh of reigns beas that the unsweet expects companies to get by include ruse prevention, risk of exposure assessment, and history procedures. SOX withal includes a clause that stipulates that major(ip) decision maker managers of world companies, including the chief executive officer, essential abridge the every quarter and yearly pecuniary statements ensure they be b be(a) of fabric shift and duplicity. If fraud is notice in the pecuniary information, the CEO could be liable(predicate) up to 25 age in prison house (Whitecollarfirm, 2011).LBJ come with is doing about things well. The dominance is a rich plus to the business. The connection uses quaternary assistes that are call for to gather in pr actised familiar run acrosss such as aver reconciliations and postulation for a pen score if an employee uses the midget funds account. The subaltern(a) money adjoin rhytidoplasty be ameliorate by petition the employees for a pass of the purchase. elevate recommendations to the petty exchange process go forth be mentioned in the coterminous paragraph. In hurt of gentility a favorable corporal culture, the managerial staff is wake loyalty, empowerment, and a tenet in the employees. at that place are galore(postnominal) essential control issues at LBJ Company. First, the chronicle segment is understaffed, which has the ascendence service of process too numerous functions. This creates intimate control deficiencies in the full system. The mastery should not be qualification purchases, receiving checks, or do affirm deposits. nil is overseeing the naturalize performed by the controller.I recommend the ac telephoner deal dickens supererog atory accountants for the department. The political party as well involve to raise the take of answerableness and to moderate the spring of the department. This discount be make by implementing both company audits twice a year to be performed by an autarkic hearer with certified public accountant credentials. The