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Recommendations on Internal Controls

In: Other Topics

Submitted By Moneys007
Words 1406
Pages 6
To: The President of LJB Company
Subject:
Recommendations on Internal Control Policies at LJB Company.
Responsibility:
The recommendations herewith are designed to give assistance the President of LIB Company to establish the presence of integrity, ethics, competence and a positive control environment.
Findings:
After an audit of the existing policies of control in LJB Company, these are the finding of some points to improve. The predisposition is to optimize the procedures and the results to offer further effective service to your customers
1-Pursuant to the Sarbanes-Oxley Act of 2002 (the Act) it is mandatory for SEC registrants and their independent auditors to report on internal control in the work place. Sarbanes-Oxley Act of 2002 (SOX) requires all publicly traded U.S. corporations maintain an adequate system of internal controls. SOX imposes more responsibilities on corporate executives and boards of directors to ensure that companies’ internal controls are reliable and effective. Furthermore, Section 404 of the Act directs the SEC to adopt rules requiring annual reports of public companies to include an assessment, as of the end of the fiscal year, of the effectiveness of internal controls and procedures for financial reporting. Section 404 also requires the company's independent auditors to attest to and report on management's assessment.

2-Approved findings of LJB’s documentation procedures.
I approve the use of the pre-numbered invoices and, accounting for them in sequence. Physical, mechanical, and electronic controls that are in proper form are: The storing of blank checks in safes. However, my recommendation is to store it with limited access; and print check amounts by machine with indelible ink. Thus, approving purchase the indelible machine purchase.
Additional recommendations: Petty cash must be locked. Anything containing…...

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