...Case Study: LJB Company Internal Control Recommendations There are two primary goals of internal controls. The first is to safeguard its assets from employee theft, robbery, and unauthorized use. The second goal is to enhance the accuracy and reliability of its accounting records. This is done by reducing the risk of errors and fraudulent activities in the accounting process. Public companies are now required by regulations Sarbanes-Oxley Act of 2002 (SOX) among them to formalize control procedures in writing. Privately held companies and other organizations also have an interest in the benefits that result from formalizing and documenting their internal control procedures. Companies must develop sound principles of control over financial reporting and continually assess that the controls are working. The new rules require management to disclose to the public any material weakness identified by management. The report must also state that the company’s independent public accountant who audited the financial statements included in the annual report has attested to and reported on management’s evaluation of internal control over financial reporting. This new attestation requirement under Section 404 expands the scope of the accounting firm’s audit procedures beyond the work required solely to render an opinion on the financial statements (1). Without adequate controls to ensure the proper recording of transactions, the resulting financial data may become unreliable and undermine...
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...INTERNAL CONTROL (Case Study 2) 1. Introduction As President of LJB Company is looking to go public by bringing internal controls system which is as one of the most challenging corporate governance issues because internal control involves everything that controls risks to an organization. Our accounting department has been chosen to evaluate the internal controls of LJB Company. LJB Company is planning to be a publicly traded company in the near future. Our firm needs to evaluate the internal controls To determine where we are on the continuum of internal control compliance, where they need to be and how to close the gaps. One means of assessing readiness is to conduct a “dry run” to detect early warning signs of control deficiencies. A dry run will assess identified financial reporting risks, processes and controls, as well as control designs, against leading practices. We have gathered and provided information of internal control, also arranging the necessary the data into 3 aims of this case study: 2.Background Study 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. 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 president of the company explained the current system of internal controls to your colleague. Your colleague has...
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...Case Study 2—Internal Control Due by Sunday of Week 5, 11:59 p.m., mountain time 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. 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 president of the company explained the current system of internal controls to your colleague. 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. Since LJB Company is a relatively lean organization, they have a lot of faith in their long-term employees. They have one accountant who serves as treasurer and controller, which streamlines many of their processes. In this dual role, he purchases all of the supplies and pays for these purchases. He also receives the checks and completes the monthly bank reconciliation. The accountant is so busy that the company handles petty cash a bit differently. 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 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...
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...Case Study 2—Internal Control Due by Sunday of Week 5, 11:59 p.m., Mountain time 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. 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 president of the company explained the current system of internal controls to your colleague. 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. Since LJB Company is a relatively lean organization, they have a lot of faith in their long-term employees. They have one accountant who serves as treasurer and controller, which streamlines many of their processes. In this dual role, he purchases all of the supplies and pays for these purchases. He also receives the checks and completes the monthly bank reconciliation. The accountant also interviews and approves of all the new hires. The accountant is so busy that the company handles petty cash a bit differently. 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 accountant has recently started using pre-numbered invoices and wants to buy an indelible ink machine to print their checks...
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...Case Study 2—Internal Control Due by Sunday of Week 5, 11:59 p.m., Mountain time 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. 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 president of the company explained the current system of internal controls to your colleague. 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. Since LJB Company is a relatively lean organization, they have a lot of faith in their long-term employees. They have one accountant who serves as treasurer and controller, which streamlines many of their processes. In this dual role, he purchases all of the supplies and pays for these purchases. He also receives the checks and completes the monthly bank reconciliation. The accountant also interviews and approves of all the new hires. The accountant is so busy that the company handles petty cash a bit differently. 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 accountant has recently started using pre-numbered invoices and wants to buy an indelible ink machine to print their checks...
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...Session 5 Case Study #2 ACCT 504 Michael J. Norton Keller Graduate School Professor Gabriel Hicks August 3, 2014 To be able to reflect on the internal controls for LJB Company that need to be in place prior to the company going public, I will ask and answer three questions. I will detail these in the following ways. First, is there a need for improved or new internal controls? Second, what actions are not in compliance? Lastly, what company practices are in compliance according to the audit? According to the Sarbanes-Oxley Act of 2002, “public companies must issue an internal control report, and the outside auditor must evaluate and report on the soundness of the company’s internal controls” (Harrison, Horngren, & Thomas, 2013, p. 236). There are five internal control procedures for each transaction in the company. First is smart hiring practices and Separation of duties. Second come comparisons and compliance monitoring. Third are adequate records. Fourth, limited access to both assets and records. Last, proper approvals (either general or specific) for each class of transaction. The results of the audit bring to light the good and bad attributes of the existing internal controls that will require work to make this company ready for public trading. With the discussion complete relative to the internal controls and the necessary improvements and additions prior to going public, we move on to the actions that work for LJB at this...
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...Case Study 2 -Internal Control Due by Sunday of week 5, 11:59PM, Mountain Time 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. 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 President of the company explained the current system of internal controls to your colleague. 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. Since LJB Company is a relatively lean organization, they have a lot of faith in their long-term employees. They have one accountant who serves as Treasurer and Controller which streamlines many of their processes. In this dual role, he purchases all of the supplies and pays for these purchases. He also receives the checks and completes the monthly bank reconciliation. The accountant is so busy that the company handles petty cash a bit differently. 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 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...
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...Due by Sunday of Week 5, 11:59 p.m., mountain time 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. 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 president of the company explained the current system of internal controls to your colleague. 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. Since LJB Company is a relatively lean organization, they have a lot of faith in their long-term employees. They have one accountant who serves as treasurer and controller, which streamlines many of their processes. In this dual role, he purchases all of the supplies and pays for these purchases. He also receives the checks and completes the monthly bank reconciliation. The accountant is so busy that the company handles petty cash a bit differently. 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 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. ...
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...Table of Contents Internal Control Requirements………………………………………………….3 Bank Reconciliation…………………………………………………………………..4 Pre Numbered Invoices……………………………………………………………..4 Pay Checks………………………………………………………………………………..4 Indelible Machine……………………………………………………………………..4 Purchasing and Paying for Supplies…………………………………………..4 Human Resources……………………………………………………………………..4 Petty Cash…………………………………………………………………………………5 Assign Passwords………………………………………………………………………5 Review and Evaluation of Internal Controls………………………………6 Purpose It is the policy of the LBJ to maintain an internal audit function as a means of providing all levels of management with information to control the operations, to provide the Board of Directors with information necessary to discharge its responsibilities and to assist management in reaching a conclusion about the overall effectiveness of the system of internal control. First, I will establish the legal requirement needed and the importance of internal controls for an organization. Then I will review the current policies and establish better internal controls for each area of concern. Once these policies have been instituted by the LJB Company, they should be ready to proceed with their plan to go public. Internal control requirements When the company decides to go public the requirements listed below will prove to be very helpful. It is the responsibility of top management to make it clear that the organization values integrity and that unethical activity...
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...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. 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 president of the company explained the current system of internal controls to your colleague. 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. Since LJB Company is a relatively lean organization, they have a lot of faith in their long-term employees. They have one accountant who serves as treasurer and controller, which streamlines many of their processes. In this dual role, he purchases all of the supplies and pays for these purchases. He also receives the checks and completes the monthly bank reconciliation. The accountant is so busy that the company handles petty cash a bit differently. 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 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. On payday, the checks are picked up by the accountant...
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...Review of article: “Statin Use and Risk of Cerebral Aneurysm Rupture: A Hospital-based Case-control Study in Japan,” Y. Yoshimura, Y. Murakami, et al. Design and Data Collection The presented study is a case-control study design, meaning it is based on measuring the associations between statin administration and the likely rupture of a cerebral aneurysm in purposefully selected indicator and control populations. The foundation of the study grew from theoretical components tied to animal models used in the past. The underlying conditions of interest are important but not commonly seen in humans, making it difficult to know the best medical measurements and, if possible, prescriptive interventions for unruptured neurological disorders, which generally now can be dealt with by way of surgical interventions. The written assessment of the study indicated limited evidence of human studies showing the effect of statin drugs in reducing the risk of aneurysmal ruptures. The study model used in this investigation (case-control) is readily suitable to study uncommon diseases with low overall prevalence rates. However, given the impact such a condition could have on a population segment thought to have many years of productivity – and because of promising animal studies – the study was deemed beneficial as an initial step toward learning more about the drug’s beneficial indicators. The primary endpoint of focus was the likelihood of the rupture of an aneurism and the protective effect...
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...survey, a randomized experiment an observational study, a combination, or based on anecdotes. It was an observational study, although the author mentions that they randomly picked study subjects, they still manipulated the distance in which they were doing their study on. It qualifies as an observational study because it was a case-control study in which people with the ownership of weapons were closely observed and a proxy for their victim was interviewed. Step 2: Consider the Seven Critical Components in Chapter 2 (pp. 18-19) to familiarize yourself with the details of the research. As in Case Study 6.5 based on the original report, the seven questions can all be answered. The research was supported by a grant from the Centers for Disease Control and Prevention. The source information was from the Departments of Internal Medicine (A.L.K., J.G.B., B.B.H.), Preventive Medicine (A.L.K.), Biostatistics and Epidemiology (A.L.K., G.S.), and Pathology (J.T.F), University of Tennessee, Memphis; the Departments of Pediatrics (F.P.R.), Epidemiology (F.P.R.), and Pathology (D.T.R), University of Washington, Seattle; Harborview Injury Prevention and Research Center, Seattle (F.P.R., J.P.); and the Departments of Biology (N.B.R., A.B.L.) and Epidemiology and Biostatistics (N.B.R.) and the Center for Adolescent Health (N.B.R.), Case Western Reserve University, Cleveland. The participants were proxies for their victims as well as control subjects who were matched to the victims. They...
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...evidence from weaker, less valid evidence (LoBiondo-Wood et al, 2002). The question was framed around the elements of PICO; standing for “patients,” “intervention,” “comparison,” and “outcome” (Boston University Medline Plus, 2000a; Craig & Smyth, 2002). The PICO approach was developed around Evidence-Based Medicine (Richardson & Wilson, 1997), and was therefore designed for clinical studies, it can though be adapted to any research context. | | |People, patients or population - who are you asking the question about? | |Intervention - what intervention are you interested in? | |Control or comparison - what are you comparing the intervention to? | |Outcome - what outcome are you interested in measuring? | Table 1: PICO criterion People or population of personal interest means the intended study subjects, for example, Post qualifying nursing students studying Anaesthetic Practice. Intervention generally means the aspect of the people or population that is the main...
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...-philTitle : a study of morbidity nutrition and socio-economic character of the young smoker and non smoker. Introduction: Smoking is a practice in which a substance most commonly tobacco is burned and the smoke is tested or inhaled. This is primarily practiced as a route of administration for recreational use. The available absorption of tobacco through the lungs. The most common method of smoking today is through cigarettes. Primarily industrially manufactured but also hand rolled from loose tobacco. & rolling paper. It has been suggested that smoking related disease like hypertension, chronic obstructive pulmonary disease , asthma, heart failure, diabetes are causer of more than one half of all long time smokers. But the disease may also be contracted by non- smoker. It is already proved that heart disease, hypertension, diabetes & many of lungs pathology are responsible for smoking. The prevalence of smoker in the age group between 18 years to 25 years is very high is Bangladesh. Most of them are the college & university going students associated with the people those are illiterate & lived below the poverty line. These people take smoking is a process of recreation. So it is the high time to think about the bad affects of smoking in general for both smokers & non-smokers. Objectives 1. To find out the morbidity of a smoker beside non-smoker. 2. Find out the health status of smoker beside non-smoker. 3. Economical, social, psychological...
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...person in your own setting form whom you would obtain a valid opinion. The number of points assigned to each element is proportional to the number of elements that can be critiqued in each section (see decimal points in parentheses next to each item number). If you need more space to answer, please use the back of the page. Reference: Bordage G. Considerations on Preparing a Paper for Publication. Teaching and Learning in Medicine. 1989. 1(1):47-52. I. TITLE 1. (.33) The title correctly represents the content and breath of the study reported: the title is not misleading. 2. (.33) The title is clear, concise and gives importance to the study; the title captures the attention of the reader. If not suggest a title. II. AUTHOR(S) _ 3. (.33) The titles (diploma. appointment) and address of the author(s) are clearly indicated: the author(s) credentials can be appreciated. III. ABSTRACT 4. (.33) The abstract covers each and every component of the study and not only selected aspects: see reader's decision to read the paper or not: Objectives (purpose. goals. or research question) Design Subjects Setting Outcomes Materials Results Conclusion 5. (.33) The abstract contains precise information, actual data: the main results are presented. 6. (.33) The implications and benefits reported are...
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