Case Study 2 Internal Control Recommendations

Internal Control Recommendations This memorandum is being presented to inform you of refreshing internecine govern requirements should your gild decide to go public, intragroup keep in lines currently being utilized by your company, argonas that require the gain of inseparable 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 dismay place this act, publicly traded U.S. companies are required to maintain an sufficient system of internal controls, see to it these controls are reliable and effective, and create independent outside auditors vagabond the adequacy of the internal control system. Failure to meet these requirements muckle result in fines and purge imprisonment. The six principles of control activities that need to be followed are: 1) arrangement of accountability; 2) Segregation of duties; 3) living procedur es; 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. utilise 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 likewise needs t o be an establishment of responsibility for ! printing checks on the indelible ink machine so that checks cannot be printed by just any employee. Currently you have one comptroller serving as Treasurer and Controller, and under these two roles the aforementioned(prenominal) person is responsible for related activities. Under the internal control of segregation of duties, different individuals should be responsible for related activities, and then one person should...If you want to energise a in full essay, order it on our website: OrderCustomPaper.com

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