Case Study 2- Internal Control

To the President of LJB: It is critical to note that going public is a phenomenal and transformational event for all smart set. However, before every hole-and-corner(a) caller-out makes the final decision to go public, there be important decisions that involve to be made; one of them existence the enforcement of proper inborn operate procedures. LJB will need to influence additional requirements and continuing obligations as a public company that may require new skills sets, additional resources and changes to the business (PricewaterhouseCoopers, 2010). This merely heart that the company ineluctably to implement internal absolve measures that will satisfy the requirements of the Sarbanes-Oxley Act of 2002 (SOX) section 404 and meet the all-inclusive five interrelated internal control components. Mr. President, everyone at LJB needs to downstairsstand the definition of internal control and what is required of them under the SOX lawfulness since this law requi res a combined effort from take heed and employees alike. Internal control consists of all the related methods and measures adopt indoors an organization to safeguard its assets, enhance the accuracy and time-testedness of its accounting records, step-up efficiency of operations, and ensure compliance with laws and regulations (Kimmel, Weygandt & Kieso, 2009, pp. 327-328).

In other words, sound internal control can ease companies achieve established pecuniary goals, prevent loss of resources, and constitute reliable pecuniary statements. Under SOX, all publicly traded U.S corporations be required to have an adequate system of internal control by means of developing principles of control over financial reporting as well! as continually corroborate that these controls are working. LJB needs to ensure that it corporate executives and boards of directors controls are reliable and effective. Additionally, independent removed auditors must attest to the adequacy of its internal control system. If for any reason, that the company is found to be...If you want to transmit a skilful essay, order it on our website: OrderEssay.net

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