This prevents transactions from being skipped over or recorded more than once. The use of pre-numbered invoices employs the control activities component of internal control. It helps in making sure that no fake checks are made and checks can be tracked easier this way due to
3. Documentation: It is vital that all transactions have proper documentations. Your company’s current use of pre-numbered invoices is an appropriate measure for this internal control. Additionally, the purchase of an indelible ink machine for printing checks would provide another layer of protection. The use of such a machine would alleviate the risk of employees altering checks for personal gain.
To be prepared for anything is hard to do but with research and good instincts a business could be and feel safe from manmade and natural disasters. Physical security can be used to fix any gaps or problems with security. They may bring in surveillance, fences, hiring someone for the front desk, security badges for employees, guards at entrances. Anything that could prevent unwanted visitors that would be the proper type of security for the business will be considered. Computer programs like firewalls and back up programs to prevent cyber crime.
Internal control requirements When the company decides to go public the requirements listed below will prove to be very helpful. It is the responsibility of top management to make it clear that the organization values integrity and that unethical activity will not be tolerated. This component is often referred to as the “tone at the top.” Control is most effective when only one person is responsible for a given task. There are many accounting regulations required by a public company. All accounting reports must follow the
March 26th, 2012 To: President of LJB Company From: Erica Sylvester Topic: Discussion of Internal Controls-New Internal Controls Mandated if Company Goes Public, Current Good Practices and Suggested Improvements 1. New Internal Controls required if company decides to go public: a. If your company decides to become a publicly traded entity, then you will fall under the Sarbanes-Oxley Act (SOX) that requires for all traded U.S. corporations to maintain a system of internal controls that are ensured by executives and the board of directors to be reliable and effective. Independent and outside auditing will be required to check and attests to the adequacy and stringency of the internal control systems (1). Under SOX, your company will also be required to track your employees’ degrees and certifications to ensure that they meet the requirements of their job.
Table of Contents Cover Page 1 Table of Contents 2 Introduction 3 Report 3 Conclusion………………………………………………………………………………...4 Work Cited Page………………………………………………………………………….5 Introduction An assessment of system controls has been conducted for LBJ Company prior to going public. In order to detect and minimize the potential for fraud, the following control activities were audited: establishment of responsibilities, segregation of duties, documentation procedures, physical controls, independent internal verification, and human resource controls. All are important for restricting responsibility and reduce the possibility of abuse. Report After reviewing the current system of internal controls the following additional internal control requirements are recommended before going public: segregation of duties, rotation of duties, establishment of responsibilities, independent physical controls, and cash controls. Currently the following controls are in place or are being considered and should be put in use: the use of pre-numbered invoices and the purchase of an indelible ink machine to print checks.
A. How will the SOX law affect audit committees of public company board of directors? The Sarbanes-Oxley Act (SOX), signed into law in July 2002, will likely affect audit committees of public company boards of directors to a significant degree. After the SOX Act was signed, the membership of audit committees was changed. In fact, members of an audit committee were required to “be a member of the board of directors of the issuer, and otherwise be independent,” where independent means “not receiving, other than for service on the board, any consulting, advisory, or other compensatory fee from the issuer, and as not being an affiliated person of the issuer, or any subsidiary thereof” (AICPA, 2006, Section 301).
Also the people entering a restricted area would be known if anything was to go missing and it would be easier to find the person that stole from that area. A lot of education facilities use this to identify who is entering the building in order to keep students and staff safe. Also this will identify who a visitor is and who is staff. Also a person’s details can be looked up if necessary. Security measures Unit 7 Task 2 Mohammed kuddus Sign in/out systems This is a paper based or electronic system and is designed to be affordable and is easy to replace if necessary.
Business risk is classified into 5 main types – 1. Strategic risk: They are the risks associated with the operation of that particular industry, these can arise from 2.1.1. Business environment: Supply & demand, buyers and sellers interacting and the introduction of new technologies. 2.1.2. Transaction: Alliances, joint ventures, spin offs, relocation of assets including mergers and acquisitions. 2.1.3.
| Team C | Memo To: WorldCom Executives From: Shernelle Rooplal, Wilder Pascual-Torress, Benson Paul, Monika Wojnakowska, Rosa Varrillas Date: June 13, 2011 Re: Audit Decision Dear Worldcom Executives, We as your audit team have decided to conduct a survey in several areas in particular within your company. 1. Corporate culture: a. We would like to gather more information in regards to communication between departments. b.