Case Study 2 Internal Control Recommendations

Internal Control Recommendations This memorandum is being presented to inform you of wise(p) internecine enclose requirements should your party decide to go public, interior(a) stops currently being utilized by your company, argonas that require the take of native 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 pass up place this act, publicly traded U.S. companies are required to maintain an commensurate system of internal controls, see to it these controls are reliable and effective, and water independent outside auditors vagabond the adequacy of the internal control system. Failure to meet these requirements muckle result in fines and blush imprisonment. The six principles of control activities that need to be followed are: 1) governance of accountability; 2) Segregation of duties; 3) living procedures; 4) Physi cal 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. using pre-numbered documents prevents transactions from being recorded much than once, or from non being recorded at all.

In addition, I do recommend the purchase of an unerasable 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 too needs to be an establishm ent of responsibility for printing checks on! the indelible ink machine so that checks cannot be printed by just any employee. Currently you have one restrainer serving as Treasurer and Controller, and under these two roles the identical person is responsible for related activities. Under the internal control of segregation of duties, different individuals should be responsible for related activities, wherefore one person should...If you want to energise a overflowing essay, order it on our website: OrderCustomPaper.com

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