Lastly, we will summarize the information presented with a synopsis of what internal control measures are recommended. Ultimately, LBJ wants to go public in the future and to do so the company must have strong internal accounting controls in place and utilized. LJB Company: Internal Controls Report. Per LBJ’s request, this report has been created to provide your organization with the tools necessary to implement a solid internal control accounting procedure system. Internal controls are extremely important accounting practices that help ensure the safety of your business from fraud and clerical errors.
Auditors are accounting experts who have sufficient professional accounting know-how to handle with complicated accounting issues for business activities. Auditors must comply with professional and ethical standard in accounting practice. c. Internal control practiced by management where as aims to ensure the entity’s business conduct in the well operation. It is management’s responsibility to establish and maintain the internal control so that the business operates in orderly way with reliable financial report, compliance with law and regulations, effectiveness and efficiency. Management responsibilities should be much wider than that of internal control by auditors.
By following the guidelines of these principles; you can ensure that your company is not only meeting regulations but will also ensure that it is being run efficiently with minimum fraud. Using these guidelines, we’ll now discuss the problems with LJB Company and the changes that can be implemented to make the company’s internal control more efficient. The first issue that LJB needs to address is the fact that the
BUSINESS CONTINUITY The purpose of a business continuity plan is to counteract interruptions to business activities and to protect critical business processes from the effects of major and long term failures of information systems or physical disaster to the work place and to resume a normal working fashion in a timely manner. A business continuity management process will be established to minimize the impact on Department of Homeland Security and recover from loss of information and physical assets to an with the use of preventive and recovery
The set regulations not only ensure that the industry is safe from fraudsters, but it also ensures that the market confidence is retained. Regulations could have negative results, but it is still necessary. Market needs to use this tool to achieve social, political, environmental and economic outcomes. Regulations are external regulatory force which helps to have proper and effective markets. To ensure a smooth, fair and honest operation within the market is the aim of regulation.
The company has been affected in a good way because this act allows the company to have the right to sell their products and services. Which allows the business to keep running and trading. * Consumer protection from unfair trading. This law is in place to prevent traders are honest and fair when offering their products and services for sale. Examples of how business have been affected by consumer protection from unfair trading- 1.
Substantive Procedures for Cash Outflow Irregularities ACC/566 Forensic Accounting September 13, 2014 Businesses have goals that include making a profit. In order to have a profitable business, it must be one that offers goods and services that are appealing to the people. When this occurs, there is a demand for the products and services and in some cases a need. Because the financial industry has its ups and downs, businesses must comply with certain rules and regulations in order to stay in business. Not only should they adhere to these guidelines and laws set forth, but they must internally protect their assets or prized possessions in order to continue the inflow of prosperity.
2.2 As there may be changes in policies within the law and your company may have to implement them to help protect the vulnerable individuals so this why it is important to have the access to full and up to date details of agreed ways of working. 2.3 The agreed way of working is all about protecting the vulnerable from abuse and promoting their choices in life so reading the code of conduct, following and reading the policy and procedures also reading and
Lessons learned: Auditing firms can be held responsible for the misrepresentation of financial information if they don’t practice due care. Auditing firms should asses risky accounts and suspicious transactions to ensure the reliability of the financial statement. Questions 1. Identify legitimate business practices that corporate executives can use for the primary purpose of manipulating or “managing” their company’s reported operating results. Are such practices ethical?
AICPA Code of Professional Conduct Trudy Linden-Craft ETH376 June 25, 2012 Juan C. Vargas AICPA Code of Professional Conduct In business, companies adopt moral values that work to guide ethical decisions to gain trust from and build integrity with its consumers. Accounting practices are an important part of a companies’ success and can lead to civil and criminal problems if a company fails to report accurate information on its financial statements. The various developments of codes of conduct over the years in the accounting profession have assisted companies’ with making ethical judgments in terms of its finances. Without the enforcement of the codes of conduct, many companies could intentionally record journal entries. Hiring CPAs allows companies to report the most accurate information to the public, board members, and potential investors.