Acct 504 Case Study
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- Date Submitted: 04/10/2014 06:43 PM
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TO: Mr. President of LJB Company
From: Khyra Botts
Table of Contents
Cover Page …………………………………………………………………………………………Page 1
Introduction………………………………………………………………………………………..Page 3
Correct Procedures……………………………………………………………………………..Page 3
Incorrect Procedures…………………………………………………………………………..Page 3
Conclusion…………………………………………………………………………………………..Page 4
Work Cited………………………………………………………………………………………….Page 5
Mr. President,
Thank you for taking the time to meet with me today and discuss your concerns with internal controls and security. Going public is a big step in the development of a corporation, and you will come under great scrutiny as to your security principles and internal control mechanisms. My colleague has informed me of several examples of how your business operates and I have prepared a few remarks and recommendations for you to address before going public.
Please allow me a moment to remind you of the objectives of internal control practices: To safeguard the assets of the corporation, improve the reliability of its accounting practices and records, increase the efficiency of the corporation's operations, and ensure that it's following laws and regulations. This can be achieved by doing the following:
* Establishment of Responsibility - setting clear expectations of your employees.
* Segregation of Duties and Segregation of Record Keeping - making sure that no single individual remains 'unchecked' by others in his or her activities, and that the same people responsible for certain actions are not also solely responsible for recording those actions.
* Documentation of Procedures - making sure that the expense reports are accurate and that original receipts are used for proof.
* Physical Controls - in order to safeguard property against theft and vandalism.
Based on those principles, my colleague and I noticed several areas of potential problems. Let's consider the scenarios you have provided:
First, it is very...
From: Khyra Botts
Table of Contents
Cover Page …………………………………………………………………………………………Page 1
Introduction………………………………………………………………………………………..Page 3
Correct Procedures……………………………………………………………………………..Page 3
Incorrect Procedures…………………………………………………………………………..Page 3
Conclusion…………………………………………………………………………………………..Page 4
Work Cited………………………………………………………………………………………….Page 5
Mr. President,
Thank you for taking the time to meet with me today and discuss your concerns with internal controls and security. Going public is a big step in the development of a corporation, and you will come under great scrutiny as to your security principles and internal control mechanisms. My colleague has informed me of several examples of how your business operates and I have prepared a few remarks and recommendations for you to address before going public.
Please allow me a moment to remind you of the objectives of internal control practices: To safeguard the assets of the corporation, improve the reliability of its accounting practices and records, increase the efficiency of the corporation's operations, and ensure that it's following laws and regulations. This can be achieved by doing the following:
* Establishment of Responsibility - setting clear expectations of your employees.
* Segregation of Duties and Segregation of Record Keeping - making sure that no single individual remains 'unchecked' by others in his or her activities, and that the same people responsible for certain actions are not also solely responsible for recording those actions.
* Documentation of Procedures - making sure that the expense reports are accurate and that original receipts are used for proof.
* Physical Controls - in order to safeguard property against theft and vandalism.
Based on those principles, my colleague and I noticed several areas of potential problems. Let's consider the scenarios you have provided:
First, it is very...