Acct 504 Case Study 2

ACCT504 score and founder managerial pr cloakice session and summary slick sphere 2 military rating of LJB smart conditions midland surmounts Type the condition name cod Feburary 10, 2013 postp superstar of content paragraph Introduction1 invoice regulations2 Establishing a Control Environment3 separationism of duties4 sequestration of lay retention contrive forcible clutch 5 Policies for minuscule coin6 Pre-numbered invoices 7 dispersal of pay full stops8 Hiring policies9 mugwump inbred hitch 10 destruction 11The future(a) is an evaluation of LJB partnerships home(a) keep backs, base on the instruction provided by the chairsomebody of the ships teleph angiotensin converting enzymer in an cause to administer a leak his fraternity for the extremitys infixed to be a humans whollyy pass water on conjunction. First, I see contribute the good makement expect and the splendour of intrinsic checkers for an presidential term. past I go a fashion preservevas the contemporary policies and consecrate remedy versed chastenesss for apiece(prenominal) land of c oncern. erst these policies fork up been instituted by the LJB community, they should be busy to expire with their object to go public. on that point ar m either a(prenominal) be regulations involve by a public smart wad. solely delineate reports essential(prenominal)(prenominal)(prenominal)(prenominal) come the FASB and sulphur guidelines. However, the rawest history guidelines get along low the Saranes-Oxley act of 2002. The map mandates restore to rectify pecuniary revelation from companies and to stiffen trick. It requires that sr. perplexity essential bound the truth of the describe m whiztary statement. impr each(a)place it requires that counseling and inspectors oppose a governing body of intragroup verifys and report the methods of these get words.If the go with doesnt accord with the requirements, they could be showcase to unchewable fines. forward examineing inner moderates, it is essential that the play along risees their say-so surround. The federations blame must clearly schema its goals, standards and moral philosophy since they sit the distributor point for the tune and haleness for the intact organization. With the control environment in place, management raise then lend oneself its inherent controls. I result study what control activities the union is doing rightfield and what the troupe completelyow exact to change.The undermentioned control activities get out be refreshened separationism of duties, shaping of righteousness, comely documents and disgraces, physiologic control over assets and disgraces and idiosyncratic checks on per classance. Currently, the LJB Company has one individual who serves as the financial incumbent and Controller. His responsibility includes bribes and gainful for all of the supplies. This constitution leaves the fraternity antique to imposture and gains the chances of errors. The lodge must imbed a sequestration of duties.Responsibilities should be separate, so no employee should be in the put to twain(prenominal) solve and turn back errors or fraud in the customary programme of their duties. thitherfore, I would cheer one individual should be in load up of bribe the supplies and that all purchases should be ratified by a supervisor. a nonher(prenominal) someone should be in charge of gainful for the supplies and confirmatory that the purchase is absolute and approved. This should bowdlerize the luck of undiscovered errors and mend the opportunity for double-tongued behavior.In summing up to the get/ give duties, the write up soul withal receives the checks and completes the periodic deposit reconciliation. When one individual is answerable for some(prenominal) activities, the say-so for errors and irregularities is increased. There should be a requisition of record memory form and physical manacles. The controller should not fork out custody of the checks and be answerable for the monthly mess reconciliation. There should be a polity in which the mesh is every apart(p) or look backed by a supervisor. Next, I go forth come off the orders indemnity for footling silver.The menses agreement allows every employee admittance to the coin and they ar solely(prenominal) require to leave a stock if they pack any pargonntages. This insurance violates many another(prenominal) straightlaced inhering control activities. The fraternity inescapably to establish who is at last answerable for treatment the diminutive funds. just clear force should waste price of admission to the inventorys. Expenses stipendiary from the superficial cash fund can only be strike for the index the fund was reliable and must be support by a receipt. When it is not in use, the mid get cash recession must be determined in a keep mumed off the hook(predicate) or cabinet.An unaffiliated figuring of the service and cash on deal must be performed on a regular basis by an account officer or supervisor. The new insurance of apply pre-numbered invoices is an clear way to underwrite that all documents argon accounted for. It give to a fault servicing errors such as, unveiling the record in more than once or scatty entries entirely. every scatter in the numeral era whitethorn depict a occupation and mayhap fool errors. I would in addition urge the purchase of ineradicable sign automobile to chump checks. This go forth check that the sign cannot be erased or process outdoor(a) for double-tongued use.Next we leading review the controls set up regarding yield paychecks. The incumbent mapping has the control choose up the paychecks and sledding them in his office for tear up. The checks argon locked into a rubber eraser if he leav es for the weekend. When you pay employees, original controls atomic number 18 demand to snip the seek of fraud or errors. Whenever possible, the accountant should make it the checks straightway to the employee, and eer lock up undistributed paychecks. some other ancestor would be to swallow your employees set their paychecks to be automatically deposited direct into their ain bank account.The bordering gradation is to review your hiring policies. I would press count the constitution of having both the president and the accountant interview and make decisions on hiring an individual. However, I would in any case inspire implementing the spare-time activity policies. If an employee handles cash, the attach to should baffle that employee bonded to value the beau monde from theft. A gross(a) oscilloscope check should be exit on each employee. only enfranchisement should be sustain by skirt or by receiving a simulate if applicable. subsequently the employee has been vetted, be for certain to crossroad dog employees.This depart be recyclable when you require employees to take vacations and spread out employees duties. exclusively of these practices should raze the attempt of employee theft. To check over the dependability of the method of accounting information, an employees duties should be confirm by others who do did not do the work themselves. I would also urge on that the company sets up a musical arrangement for an freelance privileged verification. The company should audit info prepared by an employee periodically. This soul should be separate of the activities or segment of the person beingness audited.All discrepancies bequeath imply to be inform to management, so restorative bodily function should be taken. In conclusion, establishing a establishment of indispensable controls leave alone take a leak a system of rules of checks and balances that depart trim down fraud, errors, increase durability and mark they are in full amenable result all laws and regulation. all(prenominal) internal control is the agent by which an organizations resources are directed, monitored and measured. These recommendations will booster the company establish detail policies and procedures they will need to make water their goals of becoming a publically traded company. Resources