DEVRY ACCT 504 Week 5 Case Study 2 Internal Control LJB Company
Check this A + tutorial guideline at
http :// www . assignmentcloud . com / acct- 504 / acct-504-week-5-case-study-2- internal-control-ljb-company
For more classes visit http :// www . assignmentcloud . com
Case Study 2 - Internal Control- Due by Sunday of week 5 LJB Company , a local distributor , has asked your accounting firm to evaluate their system of internal controls because they are planning to go public in the future . The President wants to be aware of any new regulations required of his company if they go public so he met with a colleague of yours at a local restaurant . The President of the company explained the current system of internal controls to your colleague . Your colleague has since been promoted to a tax position so she has passed on the information below so you can generate recommendations for the partner at your accounting firm to share with the President of LJB Company . Since LJB Company is a relatively lean organization , they have a lot of faith in their longterm employees . They have one accountant who serves as Treasurer and Controller which streamlines many of their processes . In this dual role , he purchases all of the supplies and pays for these purchases . He also receives the checks and completes the monthly bank reconciliation . The accountant is so busy that the company handles petty cash a bit differently . All employees have access to the petty cash in a desk drawer and are asked to only place a note if they use any of the cash . The accountant has recently started using pre-numbered invoices and wants to buy an indelible ink machine to print their checks . The President is waiting to hear from you if this