Internal Control Essay

buyers, investors, and other capital sources. Under SOX Section 404, all publicly traded U.S. corporations are required to maintain an adequate system of internal controls. Corporate executives and boards of directors must ensure that these controls are both

Internal Control Assessment for LJB Company The President of the LJB Company has asked our company to do an internal control assessment of his company. This company has plans to go public in the near future, and the President wants to make sure that they are in compliance with current regulations. However, the President expressed that they have become very comfortable and possibly too comfortable employees, when it comes to safeguarding company monetary assets. The Internal Control Team (ICT)

study. Internal control is define as the whole system of internal control, financial and otherwise established by management in order to carry on the business of the enterprise in an orderly manner and efficient, ensure adherence to management policies, safeguard the assets and secure as far as possible the completeness and the accuracy of records. - Dr. Kwame Aveh. (Auditing page 82-83, 2010) The individual components of an internal control system are known as controls or internal controls. Internal

various publicly traded companies throughout the country. With that much money involved, it is only wise that there be control measures and safeguards put into place protect these investments from any unlawful or irresponsible activity. Publicly traded companies are required by law to develop such measures. These measures are often referred to as internal controls. These internal controls exist for two main reasons. One reason being, to keep the employees honest. With so much money and other assets involved

their financial reporting. Although sensible control systems fail for produce ultimate guarantees to assure that financial reports will be free from errors or misstatements, an effective internal

ACCOUNTING SYSTEMS, INTERNAL CONTROLS, AND ETHICS Prepared for the course team by Vimlesh B. Narayan Unit 1 Contents Unit 1 Contents 2 Concept Map 3 Learning Outcomes 4 1.1 Introduction 5 1.2 Accounting System Design 6 System Objectives and Design Factors 6 Designing the System 8 1.3 Internal Control Systems 17 Objectives of Internal Control Systems 17 Structure of Internal Control Systems 18 Why You Should Consider the Components? 21 Internal Control Principles and Limitations

STANDARDS OF INTERNAL CONTROL Issued April 2007 Table Of Contents I. II. III. IV. V. VI. VII. 1.0 2.0 3.0 4.0 5.0 Preface Objective Scope Process Responsibility Fraud Revisions Introduction General Control Requirements Quick Reference Revenue Cycle 2.1 Order Entry/Edit 2.2 Loan/Financial Aid 2.3 Billing 2.4 Accounts Receivable 2.5 Collection 2.6 Cash Receipts Procurement Cycle 3.1 Supplier Selection and Retention 3.2 Purchasing 3.3 Receiving 3.4 Accounts

Internal Control - Integrated Framework Executive Summary Senior executives have long sought ways to better control the enterprises they run. Internal controls are put in place to keep the company on course toward profitability goals and achievement of its mission, and to minimize surprises along the way. They enable management to deal with rapidly changing economic and competitive environments, shifting customer demands and priorities, and restructuring for future growth. Internal controls promote

Internal controls are necessary for organizations of any nature and particularly those that are numbers driven such as accounting, and finance. They safeguard assets, maintain records, prepare and promote financial reports and operational efficiency, adhere to management and ensure compliance with regulations. “Information systems encounter serious security threats that may arise from the weakness of the internal controls and/or the nature of the competitive environment as the need and dependency

company, a few internal controls should be implemented to comply with the Sarbanes-Oxley Act (SOX). * Management will need to provide periodic quarterly reports to evaluate the effectiveness and reliability of LJB’s internal controls over financial reporting procedures. * Management should certify the accuracy and fairness of presentation of their financial statements. * Independent auditor(s) outside of LJB will need to attest to management’s assessment of said internal controls. Additionally