Company Internal Control Statement

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Laman Company Internal Controls System Evaluation Report Client: LJB Company Oct. 5, 2012 TABLE OF CONTENTS 1 Introduction 2 Definitions 2.1 Fraud 2.2 Internal Control 2.3 The Sarbanes-Oxley Act 3 Understanding of Internal Control 3.1 Five primary components of Internal Control Systems 3.2 Six Principles of Control Activities 4 Existing Conditions and Recommendations 4.1 Well Done Aspects 4.2 Aspects Need Improvements 5 Conclusion 1 INTRODUCTION This report is prepared in order to address the internal control problems that LJB Company is facing in their operation system. The company is planning to go public, so it is very important for the leadership to understand what qualifies a company to be a public one in completing their internal control and cash systems. The report first introduces key definitions and background information related to internal control system, and the principles the leadership needs to know. In order to go public, a company needs to fulfill new internal control requirements which are explained in the following chapter. Based on existing conditions the President provided, the report then confirms the correct things the company is performing. It also cites incorrect things in the current internal control system that violate internal control principles. Finally, the report provides recommendations to improve the company’s current internal control problems. All solutions are based on materials received from the client side, and are only limited to internal control system which may not be applicable to other areas. The author reserves the rights for any further explanation 2 DEFINATIONS In order to better understanding what is
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