Case Study 2
DeVry University
Professor Cleary

Acct. 504
28May14

Case Study 2
Table of Contents
Introduction ……………………………………………………………………………………….3
Required changes ………………………………………………………………………....………3
Practices to keep …………………………………………………………………………....…….3
Practices to change ……………………………………………………………………………….4
Conclusion ………………………………………………………………………………………..5
References ………………………………………………………………………………………...6

Introduction This letter is to address some concerns that the president of LJB Company has come to the author to address. The particular areas of concern are the internal controls that are present at the company. Additional concerns include changes that may need to be made if the company goes public, best practices that should be kept, and practices that need to be altered. This letter will address the issues listed in order with a summary and conclusion at the end.
Required Changes This section will cover the required changes that need to be made to conform to regulations that will need to be followed if the company decides to go public. LJB will need to conform to the Sarbanes-Oxley Act if the company decides to go public. Some key features of the act that will have to be taken to be in compliance with the act include the following; the issuance of an internal control report and have an outside auditor evaluate the soundness of the report. The auditing company may not also provide any consulting services to the company. For further information regarding the Sarbanes-Oxley Act (Commission, 2014) the web site to the S.E.C. regarding the act is included in the reference section at the end of the paper.
Practices to Keep There are a few things that are being done at LJB that are good. The faith that they have in their employees is admirable. By having the accountant as the controller as well as the treasurer does streamline the process that the