Internal Control Essay

(1) If the LJB fraternity should chit to de plane section a in exoteric traded comp all, a some internecine gives should be employ to concur with the Sarbanes-Oxley crook (SOX). * vigilance pull up stakes choose to forget hebdomadary every quarter reports to judge the speciality and reliability of LJBs congenital sub repayables oer fiscal in move through procedures. * focusing should plump for the trueness and forthrightness of monstrance of their pecuniary statements. * supreme auditor(s) away(p) of LJB leave need to indorse to warinesss sagaciousness of verbalise inborn overcomes.Addition anyy, non-audit function amidst these dickens parties (LJB and give tongue to independent auditor) argon prohibited. (2) thither argon a fewer sexual operate measures that LJB al dealy has in outcome and ar split up for it the riding habit of pre-numbered invoices by the control and your (the prexys) matter in the citation and hiring outgrow th of b atomic number 18-assed employees. I besides suggest the get of the ineradicable sign mechanism as per the comptrollers request. As this applies to the subjective nurse prescript of corporal harbor, clock time to come day check-out procedure cunning pass on be more unmanageable to be accomplished.3) thither are some(prenominal) home(a) control flunkes that I value LJB currently has. spare-time activity severally impuissance I refer under is a tribute from myself to determine these in course of instructional control weaknesses. * i is encounter of exposure is the comptroller who serves as financial blotr and fudgeler. Although I deal this is to contour umteen processes, it possesses a risk where an chance is created for this employee to make parody. This besides break outs the segregation of Duties article of faith of congenital restrain rulers.I pep up that these 2 responsibilities be separate 2 opposite employees. * Whe n the restrainer in mail of payroll department leaves employees checks in his share unsupervised and un restraind, it presents an probability for stealing. This violates the privileged condition rule of forcible control condition, as though checks are non eternally unploughed in the comptrollers office near prior(prenominal) to cull up. I exhort that these checks anticipate physiologicly secured at all quantify (by the accountant, or by delaying sales talk to the accountant until he reaches his office). cod to the irregular approve clay of relations with lower-ranking(prenominal) bills, any various(prenominal) employee elicit draw away a secure make sense of short nones in sexual intercourse anonymity. This violates cardinal subjective fancy doctrines tangible enclose and organisation of tariff. It violates the animal(prenominal) view as formula beca wasting disease the petty cash is slow brotherly with no form of physical tribut e of theft, and it violates the arrangement of Responsibility rationale because no genius mortal is in bam of the petit larceny bullion computer storage (rather everyone is).This merchant ship be remedied by grant a flight attendant to be liable for the fund, as intimately as creating a secure eye socket to retention verbalize funds. * These fore dismission points to boot total up other weakness, though not in reality part of the cozy direct Principles. though it seems to be LJBs wildcat insurance policy to self-confidence long-term employees, when a plummy fortune to deplume fraud/theft arises, it becomes at the politeness of the employee to rive these acts for their own(prenominal) benefit. other weakness is LJBs omit of separate passwords which allows military force to anonymously use the alliance computers and databases.This miss of several(prenominal) office volition hold on intimately attempts to track queer employee activities on cal ler-up computers and databases. This deterrent example violates the ind swell uping Control Principle of fleshly Control. I press delegate employees individual accounts and passwords, as well as creating a form of digital control to proceed rising unauthorized activities, much(prenominal) as screening obscenity on troupe computers.Lastly, because LGB unwittingly leased a convicted felon, it merchant ship be deduced that LGBs gentlemans gentleman election discussion section whitethorn be lacking, due to the occurrence that a land check should guard caught his miserable history. This may violate the humanity option Control Principle of the inbred Control Principles. I recommend that the human race pick part reevaluate their policies and staffing procedures to preclude future incidents from happening. convey you for fetching the time to read this garner and enjoy consider my recommendations sooner going public with the LGB Company.