Solution Summary Your tutorial is words and is a formal memo to the partner explaining the impact of going public, citing good practices, and listing weak practices along with ideas for improvement.
Having long term employees is a real asset and I commend you for retaining talent. Before he leaves for the weekend, he will move the checks into a safe in his office.
Advise the President of what the company is doing wrong they are definitely doing some things poorly. The accountant has recently started using pre-numbered invoices and wants to buy an indelible ink machine to print their checks.
Please be sure to include the internal control principle that is being violated along with a recommendation for improvement. Public companies, as the result of the passing of Sarbanes Oxley Act ofare required to document their controls, test the documented controls and have their external auditors test their testing of controls and write a report about the effectiveness of controls surrounding financial reporting.
All employees have access to the petty cash in a desk drawer and are asked to only place a note if they use any of the cash. The President expressed his frustration because both he and the accountant both interview and approve all of the new hires.
Case Study 2 -Internal Control LJB Company, a local distributor, has asked your accounting firm to evaluate their system of internal controls because they are planning to go public in the future. Inform the President of any new internal control requirements if the company decides to go public.
When you advise the President, please be sure to reference the applicable internal control principle that applies. Based on the above information, prepare a Word document to address the following: The President is still quite embarrassed because he had to fire one of his employees for viewing pornography on a company computer.
He also receives the checks and completes the monthly bank reconciliation. The President is waiting to hear from you if this is a necessary purchase before authorizing. On payday, the checks are picked up by the accountant and left in his office for pick-up.
Since LJB Company is a relatively lean organization, they have a lot of faith in their long-term employees.
So, there will be additional work on both designing, testing and auditing of controls if you decide to go public.
They have one accountant who serves as Treasurer and Controller which streamlines many of their processes. He later found out this individual was a convicted felon who served time for molesting children. Impact of going public.
Advise the President of what the company is doing right they are doing some things well and also recommend to the President whether or not they should buy the indelible ink machine. Your colleague has since been promoted to a tax position so she has passed on the information below so you can generate recommendations for the partner at your accounting firm to share with the President of LJB Company.
The company had a hard time getting the employee to admit it was him because the company does not assign individual passwords. The use of pre-numbered checks, pre-numbered invoices, locking up unused checks, having two managers The President of the company explained the current system of internal controls to your colleague.
In this dual role, he purchases all of the supplies and pays for these purchases. You must prepare a formal report for the partner to distribute to the President so no abbreviations or short-hand answers.
The President wants to be aware of any new regulations required of his company if they go public so he met with a colleague of yours at a local restaurant.
The accountant is so busy that the company handles petty cash a bit differently.Mar 10, · The accountant has recently started using pre-numbered invoices and wants to buy an indelible ink machine to print their checks.
The president is waiting to hear from you if this is a necessary. Start studying chapter 8 accounting. Learn vocabulary, terms, and more with flashcards, games, and other study tools.
store blank checks in safes; with limited access; print check amounts by machine in indelible ink. Independent internal verification (receipts).
From the passage, the president wants to buy an indelible ink machine to print their checks. In my opinion, I would like to recommend that he should buy an indelible ink machine following by the principle of internal control activities.
The accountant has recently started using pre-numbered invoices and wants to buy an indelible ink machine to print their checks. The president is waiting to hear from you if this is a necessary purchase before authorizing.
The accountant has recently started using pre-numbered invoices and wants to buy an indelible ink machine to print their checks.
The President is waiting to hear from you if this is a necessary purchase before authorizing. All Checks Are Printed Using Indelible Ink. Join; Login; The Research Paper Factory. and other printed materials. Books are a great print source to use while looking for information about your topic.
Date: Introduction Books trace their history to BC when a Chinese writer produced a book named Diamond Sutra. However, printed work.Download