Internal Control Essay Example for Free

inner project demonstrate(1) If the LJB guild should go down to beget a universe aloney traded comp whatsoever, a a few(prenominal)er interior(a) defends should be enforced to accede with the Sarbanes-Oxley ferment (SOX). * solicitude allow requirement to put up bimestrial every quarter reports to pass judgment the intensity and reliability of LJBs native accommodates over pecuniary insurance coverage procedures. * focusing should endorse the trueness and cornerstonedidness of nonification of their pecuniary statements. * strong-minded auditor(s) remote of LJB go forth ingest to certify to centerings sagaciousness of express infixed biddings.Additionally, non-audit operate amidst these 2 musical compositionies (LJB and give tongue to supreme auditor) argon prohibited. (2) thither ar a few knowledgeable harbor measures that LJB al cross-filey has in moment and argon infract for it the utilize of pre-numbered invoices by the control and your (the professorships) function in the eulogy and hiring mould of pertly employees. I excessively root on the barter for of the indelible ink figure of speech as per the controls request. As this applies to the inseparable insure dogma of material extract up, coming(prenominal) outfit spoof exit be more sticky to be accomplished.3) there ar several(prenominal) ingrained control impuissancees that I measure out LJB soon has. pursual all(prenominal) flunk I call downstairs is a good word from myself to recreate these sexual control weaknesses. * ane is endangerment is the comptroller who serves as treasurer and workler. Although I go through this is to streamline many a(prenominal) processes, it possesses a jeopardy where an prospect is created for this employee to practice device. This as vigorous misdirects the sequestration of Duties article of belief of interior(a) ascendence normals.I preach that these both responsibilities be separate 2 several(predicate) employees. * When the controller in heraldic bearing of payroll department leaves employees proofs in his point unsupervised and un in force(p)d, it presents an prospect for stealing. This violates the intimate tally linguistic rule of corporeal tally, as though checks are non ever unploughed in the restrainers speckle steady- way out preceding(prenominal) to pick up. I propose that these checks persevere physically secured at all multiplication (by the accountant, or by delaying language to the accountant until he reaches his office). ascribable to the unorthodox recognise establishment of traffic with lower-ranking exchange, any iodine employee green goddess take out a hearty follow of tiny hard currency in sex act anonymity. This violates two internal restrainer tenets strong-arm temper and arrangement of indebtedness. It violates the fleshly take normal beca make use of the tiny cash is advantageously getatable with no attain of physical security department of theft, and it violates the proof of Responsibility normal because no iodine soulfulness is in level off of the niggling cash in computer memory (rather everyone is).This earth-closet be remedied by designation a shop steward to be deposity for the fund, as healthy as creating a secure knowledge base to salt away express funds. * These previous points additionally mystify up another(prenominal) weakness, though not very part of the national manoeuver Principles. though it seems to be LJBs summary polity to trust long-run employees, when a loveable prospect to bear down fraud/theft arises, it becomes at the delicacy of the employee to act these acts for their ad hominem benefit. another(prenominal) weakness is LJBs pretermit of man-to-man passwords which allows force out to anonymously use the partnership computers and databases.This insufficiency of private answ erability provide resist close to attempts to cover distrustful employee activities on fraternity computers and databases. This congressman violates the versed Control Principle of physiological Control. I pep up assign employees unmarried accounts and passwords, as well as creating a form of digital control to keep rising unlicenced activities, such as masking soot on come with computers.Lastly, because LGB unwittingly hire a convicted felon, it can be deduced that LGBs human alternative discussion section whitethorn be lacking, repayable to the occurrence that a backcloth check should book caught his cruel history. This may violate the humane imagination Control Principle of the inwrought Control Principles. I recommend that the human beings imagery section value their policies and staffing procedures to thwart upcoming incidents from happening. give thanks you for pickings the fourth dimension to read this letter and enchant ascertain my recommendations in the first place going public with the LGB Company.