Ljb Company Case

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External Consultation to LJB Company

EXTERNAL CONSULTATION TO LJB COMPANY

Abstract
A paper presented on the case study 2 review of LJB Company. The paper will address growing issues of Sarbanes-Oxley compliance, and business ethics in regards to Corporate Social Responsibility (CSR) and adherence to current regulatory federal mandates. Paper presents tools for consideration for tomorrow’s leaders and gives a general overview of internal control strategies corporations take to limit legal responsibility in ethical/moral matters that include; matters of fraud mitigation, document retention, control activities, information/communication factors, monitoring, and assessing risk. This paper argues that organizational consideration and implementation of controls will minimize factors negatively affecting corporate sustainability; while compliance to regulatory mandates with Sarbanes-Oxley Act of 2002.

EXTERNAL CONSULTATION TO LJB COMPANY
Table of Contents
Abstract……………………………………………………………………………………ii Table of Contents…………………………………………………………………………iii Introduction of Standards/Findings…………..…...……………………………………….1 Addressing Recommendations …………..…...………………………………………...1-4 Conclusion of Review and Recommendations...………………………………………..5-6 References…………………………………………………………………………………7

EXTERNAL CONSULTATION TO PRESIDENT OF LJJB COMPANY
Internal Controls are a growing issue for compliance of the Sarbanes-Oxley Act of 2002 (Kimmel, Weygandt & Keiso, 2009). There are some additional factors that will be mentioned below in greater detail including compliance, and business ethics in regards to Corporate Social Responsibility (CSR). The importance and adherence; is outlined in Sarbanes-Oxley Act of 202; sections 302, 401, 404, 409, 802, and 906 ("The sarbanes-oxley act," 2006). The report includes a general overview of internal control strategies LJB Company should give consideration to; in order to limit legal responsibility in ethical/legal matters that include; matters of fraud mitigation, document retention, control activities, information/communication factors, monitoring, and assessing risk. Even under the best conditions, an otherwise good company can become entangled in a web of moral injustice (Hoffman & McNulty, 2009).

Sarbanes-Oxley Act, of 2002 (SOX) introduced major changes to the regulations that govern publicly traded companies. It addresses compliance and consideration under sections 302, 401, 404, 409, 802, and 906. Under SOX all companies publicly traded will maintain an adequate system of internal controls (Kimmel, Weygandt & Keiso, 2009). Some of the internal controls characteristics include, control environment, risk assessment, control activities, information/communication, and monitoring. These components will differ over time based on the size and growth of the LJB Company.

Based on the study of LJB Company on 31 August 2011; there are some findings that reveal procedures that are being done well, but also findings that reveal things that need to be completed so that LJB Company will be in compliance with SOX. Our findings included the following:

* -LJB is a small organization growing with expectations of going public in the future * -Minimal controls over long-term employees (family sense of faith in good moral character of its employees) * -One accountant serving in multiply roles including, but not limited to; Treasurer and Controller * -Accountant receives checks/completes purchases/handles bank reconciliation/ controls safe access * -Petty cash fund is available to all employees with notes to account for cash expenditure made from petty cash fund * -One known case of employee misconduct resulting in termination * -No known controls measures for Human Resource (HR) controls * -Request for pre-numbered invoices

* -Request for indelible ink machine
* -No known controls for access on organizational...
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