LJB Company Case Study Example | Topics and Well Written Essays - 750 words - 4

LJB Company - Case Study Example This discussion outlines that fulfilling these requirements in advance and formulating appropriate plan is the key to a winning entry into the market as public firm. Section 302 of the Sarbanes-Oxley Act states that the management of the companies, which are made public recently, must deliver a report that evaluates the effectiveness of the firm’s internal control over financial reporting. An attestation report on the operating effectiveness of the measures is also in need to be submitted by the firm. As the paper highlights the manager should appoint independent counsel and advisors as stated necessary by the law to carry out the duties and to deal with concerns related to employees and organization. They are necessary to meet the issues regarding accounting, internal control, and auditing procedures. The LJB Company management should integrate the internal controls systems into the financial processes on time in order to adequately assort and asses the effectiveness of the implemented control measures. The LJB Company is seen functioning well with many of its activities. The company was doing right when it decided to start using pre-numbered invoices for the petty expenses. It would bring the transactions into the daylight from being tampered or manipulated. In the same way, the decision to use indelible ink machine to print their checks is considered to be a wise decision. There is less chances for clerical errors when using indelible ink machines. Furthermore, the system of paying the employees sounds well and suits well with the requirement of becoming a public company. On the payday, the accountant himself prepares the checks distributed at the office. In accordance with the company’s system, before closing fort he weekend, the accountant moves all the cash balance and checks into the safe in his office. This practice makes sure that no cash-at-hand is kept with the accountant without entering the accounts.