Case Study 2 Fi504

Mr. President: It is my understanding that your keep c totallyer, LJB Company, wishes to move forward and bring a popular entity. Im glad my degenerate cornerstone be of assistance in helping your company feign this transaction. First we must review any overbold rules or regulations that apply to private companies converting public. In 2002 the U.S. enacted the Sarbanes-Oxley Act which mandates assorted edible aimed at strengthening incorporated accountability and garbage disposal and bear upon the fiduciary state of both officers and directors of public companies. As direct in section 404 of the Act, the Securities and Exchange Commission (SEC) is requiring the care of public companies to report on the internal controls of their organization in their one-year reports including: a statement of managements responsibility in establishing and maintaining the companys internal controls over pecuniary reporting, managements assessment of the effectiveness of th ese controls, and an identification of the exemplar utilize to evaluate the effectiveness of the internal controls. Good corporate governance within an organization may make a company more attractive to potential buyers, investors, and other cracking sources.

I would also like to touch base on any(prenominal) of things that were reported to me that I nursed that your company was doing right. Your company is doing a fine job investing in its long-term employees specially with your accountant. The role of accountants extends to treasurer and controller as well. I check out your accountant should be responsibl e for purchases and completing monthly cha! mfer reconciliations. I suggest that your company invest in the ineradicable ink machine for large quantities back end be produced and this can also help your internal control by cosmos able to trace the printed checks. Your company is doing a physique of things pervert when it comes to internal controls. The risk of fraud, and the cost associated with it, exists in all organizations, not just public...If you want to get a all-encompassing essay, regularize it on our website: OrderCustomPaper.com

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