Ljb Annual Report Sample
LJB Company
Prepared by: Tracey Maier
08/06/2013
Table Of Contents
Introduction …………………………… 3
Findings ……….……………..…………. 4
Summary & Conclusion …………… 8
Works Cited ……………………….…… 9
Introduction
President,
I’ve had the pleasure of reviewing your company prior to going public. Often businesses fail in their Initial Public Offering (IPO) due to a few key misses in their internal controls. Your company is clearly on the way up very quickly and going public will help finance your long-term goals as an organization. In order for you to stay competitive and be successful in your IPO, a few changes need to be made in your organization to raise the level of internal control. In the first section, you will see a layout …show more content…
For example, the accountant being responsible for purchasing, payments, receiving checks, and the bank reconciliation could certainly lead to some question in the integrity in the processes. Instead, ensure that there is segregation in related activities by having multiple bodies involved in these activities. This will also increase the amount of independent internal verification. If more parties are double-checking the prepared orders and a treasurer is verifying the cash statements prepared, there is more security for the company’s …show more content…
Employees being hired should go through a background check and drug testing to verify that any issues have been addressed and resolved. While this will ensure a higher quality of individuals, an internal control to password protect each individual user will hold accountability for computing activities.
Summary and Conclusion As you transition to a publicly traded company, there are certainly a lot of things to consider and to keep in mind. Don’t treat this as an uphill battle, as there is plenty to capitalize on and leverage as strengths. Continue the lean mentality and this will keep costs down. In addition, implement the mentioned internal controls to ensure integrity is easy and losses are minimized.
Establish responsibility for things such as petty cash tills and make sure there is a segregation of duties among related activities. Continue to utilize documentation procedures to uphold the integrity of the filing system. Use physical controls such as locks and safes to safeguard company assets. In addition, independent internal verification of the items mentioned will serve as a “double checker” to catch any errors and report discrepancies. Finally, the new human resource controls will verify that those being hired will meet the requirements of the
Prepared by: Tracey Maier
08/06/2013
Table Of Contents
Introduction …………………………… 3
Findings ……….……………..…………. 4
Summary & Conclusion …………… 8
Works Cited ……………………….…… 9
Introduction
President,
I’ve had the pleasure of reviewing your company prior to going public. Often businesses fail in their Initial Public Offering (IPO) due to a few key misses in their internal controls. Your company is clearly on the way up very quickly and going public will help finance your long-term goals as an organization. In order for you to stay competitive and be successful in your IPO, a few changes need to be made in your organization to raise the level of internal control. In the first section, you will see a layout …show more content…
For example, the accountant being responsible for purchasing, payments, receiving checks, and the bank reconciliation could certainly lead to some question in the integrity in the processes. Instead, ensure that there is segregation in related activities by having multiple bodies involved in these activities. This will also increase the amount of independent internal verification. If more parties are double-checking the prepared orders and a treasurer is verifying the cash statements prepared, there is more security for the company’s …show more content…
Employees being hired should go through a background check and drug testing to verify that any issues have been addressed and resolved. While this will ensure a higher quality of individuals, an internal control to password protect each individual user will hold accountability for computing activities.
Summary and Conclusion As you transition to a publicly traded company, there are certainly a lot of things to consider and to keep in mind. Don’t treat this as an uphill battle, as there is plenty to capitalize on and leverage as strengths. Continue the lean mentality and this will keep costs down. In addition, implement the mentioned internal controls to ensure integrity is easy and losses are minimized.
Establish responsibility for things such as petty cash tills and make sure there is a segregation of duties among related activities. Continue to utilize documentation procedures to uphold the integrity of the filing system. Use physical controls such as locks and safes to safeguard company assets. In addition, independent internal verification of the items mentioned will serve as a “double checker” to catch any errors and report discrepancies. Finally, the new human resource controls will verify that those being hired will meet the requirements of the