Ljb Company Case

1592 WordsOct 27, 20117 Pages
External Consultation to LJB Company EXTERNAL CONSULTATION TO LJB COMPANY Abstract A paper presented on the case study 2 review of LJB Company. The paper will address growing issues of Sarbanes-Oxley compliance, and business ethics in regards to Corporate Social Responsibility (CSR) and adherence to current regulatory federal mandates. Paper presents tools for consideration for tomorrow’s leaders and gives a general overview of internal control strategies corporations take to limit legal responsibility in ethical/moral matters that include; matters of fraud mitigation, document retention, control activities, information/communication factors, monitoring, and assessing risk. This paper argues that…show more content…
* Recommendation: Establish an Audit Committee to have oversight of accounting department. Findings reflect a lack of establishment of responsibility; including essential assignment of individuals that concludes an individual being responsible for a task, and another maintaining physical custody. This also includes the responsibility including authorizations and approval for transactions (Kimmel, Weygandt & Keiso, 2009). * Recommendation: Allow safe to be placed under physical control of an individual and independent person is identified to conduct physical security reports on the safe. The safe should be placed somewhere in which two individuals are required to access and lock, and record is maintained of access to the safe and checked by supervisor. Segregation is essential to the system of internal controls. Although LJB Company is streamlined for maximum efficiency some recommendations for segregation would be required prior to going public. * Recommendation: Allow for related activities to be assigned to different individuals such as receiving checks and conducting bank reconciliation. Physical custody

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