Case Study

1215 words - 5 pages

Running header: Internal Controls

LJB Company: Internal Controls Summary
President of LJB Company
– AMS Consultant
February 9, 2014
ACCT504 Accounting & Finance: Managerial Use Analysis

Table of Contents
Introduction 3
Internal Control Requirements 3
LJB Company: Current Internal Controls 4
LJB Company: Recommendations for Change to existing Internal Controls 5
Conclusion 6
References 7

Introduction
AMS Consultants would like to handle re-organization of LJB Company’s internal controls prior to the organization going public. There are several existing issues within the organization that will need to be address prior to making any significant changes to the ...view middle of the document...

Below, Linda (AMS) will explain the current process and measurements that can continue within LJB and she will analyze what changes will need to occur immediately to ensure that LJB Company is ready to go public.
Internal Control Requirements
Internal control systems consists of primary components such as: a control environment, risk assessment, control activities, information and communication, and monitoring. LJB Company president is responsible for ensuring employees that the organization values integrity and any unethical activity will not be tolerated. Currently, LJB Company does not have a risk assessment in place to help identify and analyze the various factors of current risk for the organization; this must be conducted immediately by the account and consultant. Linda (AMS) will set up control activities to help reduce fraud which will consist of policies and procedures for how petty cash is stored, handled and documented when used. Linda (AMS) will set up a communication log that will help document any financial activity within the organization and will set up a standard automatic e-mail notification that will inform employees of any and all changes made within the organization and how everyone will be trained to ensure that they are utilizing and enforcing all changes. Set up of security monitoring system that will help monitoring activity within the accounting department as well as areas that handle and use petty cash.
LJB Company: Current Internal Controls
LJB Company current internal controls are based on the organization having so much faith in their long-term employees so therefore the organization does not have much security measures or monitoring in place. The current accountant works alone and serves as treasurer and controller of all LJB Company processes; the accountant has recently started using pre-numbered invoices and want to upgrade to an indelible ink machine to print their checks. The petty cash process allows easy access by all employees being that it is stored in a drawer and the only requirement is to leave a note if petty cash is used.
Linda (AMS) continues to review LJB Company current internal controls such as the use of only one accountant which is not a good option because there should be at least one other person that validates the books. The accountant has more of an opportunity or financial pressure to commit some type of fraud within the organization because there is not anyone else that is monitoring and validating the books. Accounting records are essential and important to be maintain to the upmost integrity because the organization could collapse for mishandled bookkeeping within any organization. The advice of the accountant to use the indelible ink to print checks is a great option for tracking purposes.
LJB Company: Recommendations for Change to existing Internal Controls
Linda (AMS) recommends that the organization install...

Other Essays Like Case Study

Case Study

595 words - 3 pages Case Study Tresa Jellison HCS/483 November 12, 2012 Dr. Kaderie Case Study The basic IT implementation process is the whole process of setting up and running an IT based program for a company. It starts from the beginning to the end of the process and throughout the whole process even after the last step has been taken. You have the planning stage, and this will include what exactly what you are looking for and what you want the

Case Study

1008 words - 5 pages 12/5/2014 Kingfisher School of Business and Finance At the end of the session, each participant will: • Be familiar with the general steps in going through the case study method • Learn useful tools, techniques, watch outs, and tips on each of these steps MGT 11: PRINCIPLES OF MANAGEMENT AND ORGANIZATION MS. MAYBELLE ANN S. LOPEZ 2 ND SEMESTER 2014-2015 • Be able to practice these steps on a simple case MGT11: Principles of

Case Study

550 words - 3 pages really sets realistic goals for the other employees. She asks a lot of questions and then utilizes everyone to come up with a solution that works. In doing so she is coaching her crews and providing them with feedback in what they accomplish. 2. Julia Stewart is a great role model for generating employee engagement and motivation. Positive reinforcement is such a small thing that makes a huge difference. It is evident in the case study that

Case Study - 923 words

923 words - 4 pages Tutorial 8 – Chapter 7 Global Alliances Tutorial activity 1: Ongoing Semester Case Study – Businessville Hotel. Beijing Businessville Hotel is proving to be extremely successful. It has just been announced that a major world trade expo is to be held in Ho Chi Minh City. Around the World Hotels is interested in providing accommodation for some of the expected thousands of delegates. However, there is no time to build a new hotel. Around

Case Study - 809 words

809 words - 4 pages Case Study: University of Auckland, New Zealand uses ADAM & IEC-61499 to test economic dispatch in distributed energy grids Market: Power & Energy Application: Smart Grid Research Product: ADAM-6600 Location: New Zealand Customer: University of Auckland Project Introduction Traditional electricity grids are pretty ‘dumb’, they continuously send out specific amounts of electricity until some engineers tweak that amount to meet the needs of

Case Study - 675 words

675 words - 3 pages ) Textbook: ‘Organizational Theory, Design, and Change (6th Edition. ISBN 10: 0136087310 / 0-13-608731-0 & ISBN 13: 9780136087311; Publisher: Prentice Hall; Publication Date: 2009) Part 2 Case study 1 (20 marks) Read the case study “How Nestle Manages Its Global Environment” page 89 in your textbook and answer the following questions: 1. List various ways in which Nestle has attempted to manage its environment over

Case Study - 689 words

689 words - 3 pages , there are people who were not kind to us. But as a medic, it’s our job to care for them, no matter if that is your friend or your enemy.” Discussion Questions: 1. To what extent do the three people featured in this case study manage their own emotions on the job? How would they accomplish this? To what extent do you think they effectively manage emotions under these circumstances? 2. This case study states that nurses and other medical

Case Study - 914 words

914 words - 4 pages Case Study ABC Inc. Christopher DePasquale Essentials of College Writing/Comm 215 23 September 2013 Glenn Dayley Case Study ABC Inc. Carl Robbins is the campus recruiter for ABC Inc., and he is off to a quick start. Recently, he recruited new employees for Monica Carrolls, the operations supervisor. Some problems evolved quickly for Carl and in this case study we will examine those problems and offer solutions to

Case Study - 1012 words

1012 words - 5 pages CASE STUDY OSHA (Occupational Safety and Health Administration) is a body that was created so that it could implement the occupational safety and health act so that it can protect the employees of any company or business against health hazards, discrimination at work, and unlawful treatment at work. All the business are provided with guidelines that OSHA follows plus how to apply and comply. The act states that the employers have the ethical

Case Study - 3015 words

3015 words - 13 pages NATIONAL CENTER FOR CASE STUDY TEACHING IN SCIENCE Fat Facts: Comparing the Structure and Function of Lipids by Ling Chen and Lalitha S. Jayant Science Department Borough of Manhattan Community College / City University of New York This case study focuses on the structure and function of different fat molecules, such as fatty acid, triacylglycerol, glycerophospholipid, HDL, and LDL cholesterols. The story also compares the structures and

Case Study - 872 words

872 words - 4 pages UNIVERSITY OF THE SOUTHERN CARIBBEAN MARACAS ROYAL ROAD, MARACAS, ST. JOSEPH. CASE STUDY. An Assignment Presented in Partial Fulfillment of the Requirements for the Course HRMN400 MOTIVATION AND WORK BEHAVIOUR. INSTRUCTOR: Ms. Sherri-Lyn Legall By Jonelle Abraham 2010080263 3rd December 2014 Approval……………….. Havoc in the Office. The office usually has a quiet, calm atmosphere but on this day everything changed. Miss

Related Papers

Case Study 555 Words

555 words - 3 pages are also present as it appears that the current management are too entrenched with existing values that they are inept to change, this is also displayed through the hierarchal management within the organisation where there is no two way communication instead “principal communication is down the line”. 2. To what extent do you think the discussion of the case study helped you in forming a better understanding of the theory applicable to this

Case Study 627 Words

627 words - 3 pages 643-41 | | | | | | | | | | | | | | Case Study 1 | | | | | | | | | | | | | | Page 2/ [ 6

Case Study 770 Words

770 words - 4 pages Case Studies on Cardiac Function This is the first case study that is required for the class. Please submit a paper (doesn’t have to be long; you could even give me bullet-point answers to the questions listed below) that answers all of the questions posed after Case Study 1. I have included an easy second case study which, if you complete it, will be worth extra credit. Answers to the first Case Study are worth 25 points and responding to

Case Study 1183 Words

1183 words - 5 pages communication study undertaken by the research department of Penton Media, a publisher of business trade magazines, to determine the long-term viability of a reader and advertiser service, the reader service card, a post-card-size device used by readers to request additional information from a particular advertiser. Leveraging the scenario described in the case assignment, we will build out the management-research question hierarchy (Cooper &amp