Control Analysis of Ljb Company

In: Business and Management

Submitted By geevgwen
Words 1016
Pages 5
GG Accounting Firm

Control Analysis of LJB Company

Prepared for:
Harry Truman
President, LJB Company

2300 Pennsylvania Ave.
New York, NY

Prepared By:
Student Name
CFO, GG Accounting Firm

August 11, 2013

233 S Wacker Dr Chicago, IL 60606
Web:www.GGaccountingfirm.com │Tel 1-800-CON-TROL│ Email GGaccountingfirm@email.com
Table of Contents
Introduction ………………………………………………………………………………………………………………… 3
Internal Control ……………………..…………………………………………………………………………………... 4
Suggested Improvements to Internal Controls ..….………………………………………………………. 5-6
Conclusion …………………………………………………………………………………………………………………… 7
Works Cited …………………………………………………………………………………………………………………. 8 Introduction

According to Paul D. Kimmel, “ Internal control consists of all the related methods and measures adopted within an organization to safeguard its assets, enhance the reliability of its accounting records, increase efficiency of operations, and ensure compliance with laws and regulations”(pg. 338). This report assists to detail observations and recommendations regarding the current internal controls of the LJB Company. In LJB plans to take the company public, GG Accounting Firm has measured LJB compliance under the Sarbanes-Oxley Act of 2002 (SOX) standards. GG Accounting Firm has addressed current practices and has made suggestions that could increase the LJB Companies chances in their endeavor. The internal control recommendations will be based on the six principles of control activities listed as follows:
•Establishment of responsibility
•Segregation of duties
•Documentation procedures
•Physical controls
•Independent internal verification
•Human resource controls Internal Control

Paul D. Kimmel states, “Under SOX, all publicly traded U.S. corporations are required to maintain an adequate system of internal control. Corporate…...

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