Casestudy 2 Essay

643 Words Oct 29th, 2014 3 Pages
Week 5 Case Study 2
Acct Financial 504

October 5, 2014

1. Inform the President of any new internal control requirements if the company decides to go public. Based on the facts given in the case, new internal control requirements that are needed for the company to go public are listed. a. Compliance with Sarbanes Oxley act regulations b. Compliance with SEC, GAAP and IFRS procedures to record all transactions c. Internal audit on company financial and business processes and transactions d. Implementation of better security measures for data protection, identity protection and ensuring and insuring the company resources are not misused. 2. Advise the President of what the company is doing right and
…show more content…
i. Accountant doing both treasurer and controller job, it is recommended that there is separation of duties to ensure both roles are performed effectively. j. Lack of control on computer access and not having user authentication, it is recommended that the IT section monitors computers and other activities. k. Not having user ID and password, it is recommended that the company implement software that automatically blocks harmful or inappropriate sites, ensuring that people are not able to visit these sites using the office computers. l. Petty cash handled by multiple parties, it is recommended that the cash handled by only one person and therefore accountable. Also all transactions to be entered into financial software. m. Employee with criminal background recruited, Background to be performed for new hires. 5. If these items are addressed in its entirety all the internal control will be addressed fully. The primary components of the internal control are the following control environment, risk assessment, control activities, information and communication and monitoring. All businesses should provide individual’s security to each user, monitor the work of every user and restrict access to certain websites that are not productive to the work environment. The businesses should perform a thorough background check for all new hires. The human resources staff members should always include with

Related Documents