Since LJB Company is a relatively lean organization, they have a lot of faith in their long-term employees. 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. The president is waiting to hear from you if this is a necessary purchase before authorizing. The president of the company explainedthe currentsystem of internal controls to your colleague. 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. Get a plagiarism check of an answer before you buy it. As discussed in the previous article, these marks are not for the technical content of the answer, but for the way the relevant points are communicated. The requirement states that two professional marks are available.
See more detailsLJB 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. They have one accountantwho serves as treasurer and controller, which streamlines many of their processes.
Accounting case study internal control. The accountant has recently startedusing pre-numbered invoices and wants to buy an indelible ink machine to print their checks.
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.
In this dual role, he purchases all of the supplies and pays for these purchases. The report will be evaluated on the following:
On payday, the checks are picked up by the accountant and left in his office for pick-up. Before he leaves for the weekend, he will move the checks into a safe in his office. 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.