Essay about Case Study 3

Submitted By turbizzle7
Words: 878
Pages: 4
Open Document
LJB Company: Future Controls
President of LJB
February 10, 2013

Table of Contents
Introduction 3
Report 4
Conclusion 5
References 6

Introduction

The purpose of this report is to determine current internal controls and whether they are effective. Currently the company has liability towards its employees and its consumers therefore using the internal controls to protect itself is a necessity. “Internal controls are a system of checks and balances designed to detect and prevent fraud and errors. The Sarbanes-Oxley Act requires U.S. companies to enhance their systems of internal control.”(1) Currently the LJB Company has no checks or balances within the accounting department which could cause the company problems if accounting reports have errors that are not corrected. If the only accountant decided to report fraudulent claims and no other internal controls were in place the company could end up like Enron. Petty cash has is available for anyone to use with only the need to place a note for its use. With petty cash receipts are needed for the accounting department to track petty cash use. There is no control to reduce the possibility of stealing. “Opportunities occur when the workplace lacks sufficient controls to deter and detect fraud. For example, inadequate monitoring of employee actions can create opportunities for theft and can embolden employees because they believe they will not be caught”.(2) Background checks should be used when hiring new employees and we will determine if the company needs to purchase the check machine.
“What can be done to prevent or to detect fraud? After numerous corporate scandals came to light in the early 2000s, Congress addressed this issue by passing the Sarbanes-Oxley Act of 2002 (SOX). Under SOX, all publicly traded U.S. corporations are required to maintain an adequate system of internal control. Corporate executives and boards of directors must ensure that these controls are reliable and effective. In addition, independent outside auditors must attest to the adequacy of the internal control system. Companies that fail to comply are subject to fines, and company officers can be imprisoned. SOX also created the Public Company Accounting Oversight Board (PCAOB) to establish auditing standards and regulate auditor activity.” (3)

Report

Currently the LBJ Company is performing some operations in the correct manner. For example the firing of an employee that was using the internet for pornography instead work functions was a necessary form of control. Failing to use a background check to determine that employee was a risk due to that employee being a convicted child molester. This put employees and consumers children of the company at risk while the company would be liable for potential damages. Luckily that did not happen and the risk was minimized before greater negative actions could hinder the company.
“Companies should establish procedures for documents. First, whenever possible, companies should use pre-numbered documents, and all documents should be accounted for. Pre-numbering helps to prevent a transaction from being recorded more than once or from not being recorded at all. Second, the control system should require that employees promptly forward source documents for accounting entries to the accounting department. This control measure helps to ensure timely recording of the transaction and contributes directly to the accuracy and reliability of the accounting records.”(4) I feel the need for the indelible printing machine is needed for the physical, mechanical and electronic internal control. Blank checks should be locked in a safe
Show More

Related Documents: Essay about Case Study 3

Case Study 3 Essay

Case study -3 MANAGERIAL FINANCE –BUS503 Professor : Rob Shah, MBA, CPA, CMA Course Dates : 01/12 – 03/08 Name : NAVEEN XAVIER Abstract The purpose of this paper is to summarize the Case Study The MBA Decision. This case discusses East Coast Yachts : Goes Public. The purpose of this paper is to analyze options and make the decision that is going to be the most fiscally responsible in the long run. This decision will be achieved by answering the 4 questions at the end of the case…

Words 626 - Pages 3

Case Study 3 Essay

Case study 3 1.) who needs a Porsche? Porsche is a unique car company, because their customers don’t necessarily need a Porsche but they want the luxury of a Porsche. The customer can find value in the Porsche simply by its name and the other people that you see driving a Porsche. No one sees someone driving a Porsche that does not think to themselves that person must be successful, and that is value in its self. The price also has to do with the value, because Porsche must set the price high…

Words 407 - Pages 2

Case Study 3 Essay

@ 2:30pm Case Study #3 1. Epilepsy is a group of neurological disorders characterized by epileptic seizures. Epileptic seizures are episodes that can vary from brief and nearly undetectable to pro-longed periods of vigorous shaking. In epilepsy, seizures tend to recur, and have no immediate underlying cause while seizures that occur due to a specific cause are not deemed to represent epilepsy. Epilepsy is diagnosed through testing most commonly using an EEG or MRI like in Jerrod’s case. Three types…

Words 787 - Pages 4

Case Study 3 Essay

Case Study 3 Why is it so important for Caterpillar to develop new products on a regular basis: It is important for caterpillar to develop new products on regular basis for multiple reasons. Caterpillar was originally started by two innovators by the name of Benjamin Holt and Daniel Best, both whom worked in the agriculture industry. Working in the agriculture field these two men combined their knowledge and talents and “were among the first to introduce steam and gasoline powered farm equipment…

Words 1296 - Pages 6

Mkt Case Study 3 Essay

Marketing Management Case Study #3 Flavia Ana M. Guez International American University MKT 500: Marketing Management Prof. Dr. Janice M. Spangenburg May 24, 2015 Personal Purchase In a market that is flooded with uncountable products, making a shopping decision might prove to be a challenge if you are uncertain about what exactly you want and need. The latest purchase that I have made today was a bag of dog food of the same brand that i`ve been purchasing for the past year. Influenced through…

Words 341 - Pages 2

Chapter 3 Case Studies Essay

Chapter 3 case studies L Shaddock and Associates Pty Ltd V Parramatta city council Shaddock was a land developer interested in buying land in Parramatta Shaddock inquired to the council if there was plans which might affect the property The council replied in the negative. The council in fact did affected the property Shaddock argued that the council owed it a duty to take reasonable care in responding to shaddock’s enquiry. The council did owe a duty of care to shaddock, they breached its duty…

Words 1711 - Pages 7

Essay on Case Study 3 Chipotle

Jessica Hawthorne Dr. Ecklund Chipotle Case October 30, 2014 2. The SWOT analysis reveals a lot about Chipotle Mexican Grill’s situation and future prospects. The first strength that Chipotle has is that their food is all locally sourced. They serve top quality, nutritious ingredients. The dairy products such as the sour cream and cheese come straight from the milk from the cows that were not given recombinant bovine growth hormone. The beans that are served are organically grown and some are also…

Words 1032 - Pages 5

A P Case Study 3 Essays

which goes to the sensory neurons and travel through afferent fibers, then through the spinal cord and finally to the brain. 2) The motor division. Motor impulses travel through efferent fibers. A motor neuron and all the muscle fibers connected to it. 3) Muscles contracting. Glutes, hamstrings, and quadriceps 4) Muscle, fascicle, muscle fiber, myofibril, myofilament. -The smallest contractile unit of muscle; the proteins slide past each other when the muscles relax and contract. 5) It binds to…

Words 331 - Pages 2

Nt1330 Unit 3 Case Study

H.323 is probably the most important standard supporting packetized voice technology. During the 1990s, the H.320 standard was defined for ISDN BRI videophones and videoconferencing systems. The initial H.323 (H.323v.1) recommendation in October 1996 was heavily weighted toward communications in a LAN environment, but experiments with voice communications over the Internet were already underway. As VoIP became more commonplace, the need for a standard method of providing voice communications over…

Words 171 - Pages 1

Nt1330 Unit 3 Case Study

1. Describe the challenges facing primary care professionals in outpatient setting when treating children with emotional and behavioural disorders 2. Assess collected evidence which supports the need for collaborative care solutions and services 2. Illustrate an innovative collaborative practice model which promotes the knowledge exchange and inclusion of specialized health professionals in providing continuous support and professional development opportunities for primary care service providers…

Words 64 - Pages 1