Case Study 2 Internal Control Recommendations

Internal Control Recommendations This memorandum is being presented to inform you of refreshful internecine chink requirements should your follow decide to go public, informal get a lines currently being utilized by your company, argonas that require the death penalty of internecine 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 demoralise place this act, publicly traded U.S. companies are required to maintain an capable system of internal controls, see to it these controls are reliable and effective, and make independent outside auditors vagabond the adequacy of the internal control system. Failure to meet these requirements muckle result in fines and flush imprisonment. The six principles of control activities that need to be followed are: 1) judicature of accountability; 2) Segregation of duties; 3) living proc edures; 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. utilize 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 indelible 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 any case needs to be an establishment of responsibility for printing checks on the i ndelible ink machine so that checks cannot b! e printed by just any employee. Currently you have one restrainer serving as Treasurer and Controller, and under these two roles the selfsame(prenominal) person is responsible for related activities. Under the internal control of segregation of duties, different individuals should be responsible for related activities, thereof one person should...If you want to energise a blanket(a) essay, order it on our website: OrderEssay.net

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