Acct 504 Case Study 2

ACCT504 – Accounting and Finance: Managerial Use and Analysis| Case Study 2| Evaluation of LJB Company’s Internal Controls| | [Type the author name]| Due: Feburary 10, 2013| Table of Contents Paragraph Introduction1 Accounting regulations2 Establishing a Control Environment3 Segregation of duties4 Segregation of record keeping form physical custody 5 Policies for petty cash6 Pre-numbered invoices 7 Distribution of paychecks8 Hiring policies9 Independent internal verification 10 Conclusion 11The following is an evaluation of LJB Company’s internal controls, based on the information provided by the President of the company in an effort to prepare his company for the requirements needed to be a publically run company. First, I will establish the legal requirement needed and the importance of internal controls for an organization. Then I will review the current policies and establish better internal controls for each area of concern. Once these policies have been ins tituted by the LJB Company, they should be ready to proceed with their plan to go public.There are many accounting regulations required by a public company. All accounting reports must follow the FASB and SEC guidelines. However, the newest accounting guidelines fall under the Saranes-Oxley act of 2002. The Act mandates reform to improve financial disclosure from companies and to reduce fraud. It requires that senior management must verify the accuracy of the reported financial statement. Plus it requires that management and auditors maintain a system of internal controls and report the methods of these controls.If the company doesn’t comply with the requirements, they could be subject to hefty fines. Before establishing internal controls, it is essential that the company establishes their control environment. The company’s management must clearly outline its goals, standards and ethics since they â€Å"set the stage† for the atmosphere and integrity for the ent ire organization. With the control environment in place, management can then implement its internal controls. I will review what control activities the company is doing right and what the company will need to change.The following control activities will be reviewed; segregation of duties, establishment of responsibility, adequate documents and records, physical control over assets and records and independent checks on performance. Currently, the LJB Company has one person who serves as the Treasurer and Controller. His responsibility includes purchases and paying for all of the supplies. This policy leaves the company venerable to fraud and increases the chances of errors. The company must establish a segregation of duties.Responsibilities should be separate, so no employee should be in the position to both make and conceal errors or fraud in the normal course of their duties. Therefore, I would recommend one person should be in charge of purchasing the supplies and that all purchas es should be approved by a supervisor. Another person should be in charge of paying for the supplies and verifying that the purchase is accurate and approved. This should reduce the risk of undetected errors and limit the opportunity for fraudulent behavior.In addition to the purchasing/paying duties, the accounting person also receives the checks and completes the monthly bank reconciliation. When one individual is responsible for both activities, the potential for errors and irregularities is increased. There should be a segregation of record keeping form and physical custody. The accountant should not have custody of the checks and be responsible for the monthly band reconciliation. There should be a policy in which the work is either separated or reviewed by a supervisor. Next, I will review the company’s policy for petty cash.The current system allows every employee access to the cash and they are only required to leave a note if they remove any funds. This policy violat es many proper internal control activities. The company needs to establish who is ultimately responsible for handling the petty cash. Only authorized personnel should have access to the funds. Expenses paid from the petty cash fund can only be made for the purpose the fund was authorized and must be supported by a receipt. When it is not in use, the petty cash box must be placed in a locked safe or cabinet.An independent count of the receipts and cash on hand must be performed regularly by an accounting officer or supervisor. The new policy of using pre-numbered invoices is an excellent way to insure that all documents are accounted for. It will also help errors such as, entering the record in more than once or missing entries entirely. Any gap in the numerical sequence may indicate a problem and possibly catch errors. I would also recommend the purchase of indelible ink machine to print checks. This will insure that the ink cannot be erased or washed away for fraudulent use.Next we will review the controls set up regarding issuing paychecks. The current procedure has the accountant picking up the paychecks and leaving them in his office for pick up. The checks are locked into a safe if he leaves for the weekend. When you pay employees, certain controls are needed to reduce the risk of fraud or errors. Whenever possible, the accountant should hand the checks directly to the employee, and always lock up undistributed paychecks. Another solution would be to have your employees set their paychecks to be automatically deposited directly into their personal bank account.The next step is to review your hiring policies. I would recommend counting the policy of having both the President and the accountant interview and make decisions on hiring an individual. However, I would also recommend implementing the following policies. If an employee handles cash, the company should have that employee bonded to protect the company from theft. A thorough background check should be run on each employee. All credentials should be verified by phone or by receiving a copy if applicable. After the employee has been vetted, be sure to cross train employees.This will be useful when you require employees to take vacations and rotate employee’s duties. All of these practices should lower the risk of employee theft. To ensure the reliability of the accounting information, an employee’s duties should be verified by others who do did not do the work themselves. I would also recommend that the company sets up a system for an independent internal verification. The company should audit data prepared by an employee periodically. This person should be independent of the activities or department of the person being audited.All discrepancies will need to be reported to management, so corrective action should be taken. In conclusion, establishing a system of internal controls will create a system of checks and balances that will reduce fraud, errors, increase ef fectiveness and insure they are fully compliant will all laws and regulation. Each internal control is the means by which an organization’s resources are directed, monitored and measured. These recommendations will help the company establish specific policies and procedures they will need to reach their goals of becoming a publically traded company. Resources

Globalization Source Analysis Essay

Globalization is the process by which different societies and cultures integrate through a worldwide network of political ideas through transportation, communication, and trade. Generally, globalization has affected many nations in various ways; economically, politically, and socially. It is a term that refers to the fast integration and interdependence of various nations, which shapes the world affairs on a global level. Simply put; globalization is the world coming together. In this essay I will discuss multiple perspectives on globalization through the analysis of these three sources. Source I’s perspective is the view that through globalization; many cultures are destroyed and that this diminishes society. This source outlines a disadvantage of globalization and views it as a negative force. This can be interpreted by the examining the quote given; Octavio Paz is referring to the homogenization of culture (the blending of different cultures in such a way that the end result is one mixed culture). As globalization occurs; the inevitable result is that cultures will have to compete for dominance. Many cultures will end up losing to the dominant global culture and this will lead to the extinction of some traditional ways of life. As result we are all becoming more like one another and in this way culture dies. Source II’s perspective is the view that the English language is dominating French through globalization. The source is displaying a negative consequence of globalization. This can be interpreted by examining the political cartoon literally; English is trying to crush French with a globe. As globalization occurs; dominant global languages will easily over power other minority languages. The source may feel this way because of what’s happening in modern day Canada. Despite being a bilingual country, the vast majority of Canadians speak English as their first language. This is a result of globalization, English has, for a variety of reasons become the language of business and of the internet and is therefore favoured. French language in Canada is therefore the minority and is â€Å"dominated† by English. Source III’s perspective is the view that because of globalization, specifically Americanization (to absorb or assimilate into American  culture), transnational corporations (any corporation that is registered and operates in more than one country at a time) have become a dominant part of global culture. This source describes this as a negative consequence of globalization. The heading â€Å"Problems of Globalization†, clearly shows that the source is trying to convey a negative aspect of globalization. This can be interpreted by examining the political cartoon; the family of three each talks about the different places they’ve been and yet they have all purchased merchandise from American companies. This is possible through the fact that American transnationals have spread all across the globe and have taken up monopolies (the exclusive possession or control of the supply or trade in a commodity or service) on certain industries. This source probably feels this way because of the basic principle of economies of scale (the cost advantage that arises with increased output of a product). As a transnational becomes larger it expands to different countries and the local small businesses stand no chance of competing with wealthy transnational corporations. In this way, business is crushed and transnationals become a staple of global culture. The three perspectives on globalization that I have discussed so far each have some things in common. Each source describes ways in which globalization affects the world and society. Each source also shows the negatives effects of globalization; namely the lack of diversity and culture that is a result of globalization. From each source you can see how globalization forces us to become more like one another by integrating us into a singular culture. Sources I, II and III are all great examples of how culture spreads to different parts of the world and how the world responds to that kind of cultural interchange. In this essay I discussed three different perspectives on globalization each showing a different side to how globalization affects the world. Like everything else, globalization has its advantages and disadvantages. Whether we embrace it or not, the fact is that globalization is inevitable. The world is coming together and with that we are all becoming more alike in the way that we speak, the way we dress, and our culture in general.

Mortgage Fraud in the UK Essay Example | Topics and Well Written Essays - 5000 words

Mortgage Fraud in the UK - Essay Example While past research has focused on the personal motivating factors behind the commission of a white-collar crime, this particular article review several facets of the crime itself and explores the possible neighborhood risk factors that help attract the crime. From a national perspective, mortgage fraud seems to take place more frequently in neighborhoods that have low socioeconomic indicators. These links become even more distinct when the amount of fraud occurrences within the community is factored in as a variable. Upon disaggregating the data according to the region, the fraud indicator variables also display differing trend levels, perhaps indicating that as mortgage fraud practices begin to mature within an area, its community dynamics are likely to modify as well.  In conclusion, mortgage fraud is on the increase in the United Kingdom and good measures need to be put in place to curb the crime. A delay in proactive and preventive measures in regard to mortgage fraud will gre atly affect the economy and that the revenue collected by the government will reduce drastically. Mortgages have a long history spanning from the 12th century but have been in common use in the UK housing sector since 1925. The word mortgage is said to derive from the French for a ‘dead pledge’ meaning â€Å"the one in which the borrower has to find ways to repay the loan† (Giles 2009). According to Giles (2009), the process of securing a mortgage can be defined as â€Å"Alien on a piece of land or property as security for a debt†. During late 2008 and early 2009, the downturn in the UK economy had a drastic impact on the once strong housing sector with house prices slumping and mortgage approval decisions declining (House Price Crash 2009). A leading factor as to why lenders run into financial trouble was lending to applicants who had provided falsified information (BBC News 2009).  

David Cole Interviews Dr. Franciscek Piper Essay - 1

David Cole Interviews Dr. Franciscek Piper - Essay Example But according to interview, Cole has disapproved the theory of concentration camps and gas chambers as gas used was just a disinfectant. Piper was an eye witness to the holocaust and believes that the figure projected by Russian was much higher, only about 1.1 million Jews had died as against the Russian propaganda of 4.4 million Jews who had been exterminated! The bullets marks were that of Air Force raids when it was turned into airbase for Germans while fighting against Allied forces. Cole believes that Auschwitz’ gas chambers and concentration camps were wild imaginations of few and Jews had probably died due to hard working conditions. But 1.1 million is not a small number and if Piper has quoted this number, then mass murders did happen. Whether they were killed or not in gas chambers or were tortured to death in concentration camps is immaterial. I fail to understand the purpose of Cole’s interview with Piper because even though, he has found no evidence that prove that people could have been killed in the gas chamber that was shown to Cole, the interview, nevertheless clearly reveals that such heinous crime was committed in Auschwitz by Germans in WWII. (words:

Learning Tool Essay Example | Topics and Well Written Essays - 250 words

Learning Tool - Essay Example The video should be supported by other information that would more comprehensively discuss the concept of Fordism. More information that is useful to explain the concept talked about â€Å"Fordism, Post-Fordism and the Flexible System of Production† (Willamette University, n.d.). Please indicate the source (url; literature reference; attach pdf) that you see will be useful in enhancing students’ learning within management in context. N.B. Materials should not cause offence (for example in racist language or sexist or images) The video that presented an overview of Fordism can be used as a source of information that provided crucial aspects of Fordism through the assertion that it was a driving force of modernization (Krier, 2010). As such, it was noted specifically at 4:29 minutes of the video, that Fordism existed during the 1920s to the 1970s and where powers of society effectively matched the power of capitalism (Krier, 2010). The source could be effectively used in enhancing one’s knowledge on concepts of Fordism as evolving from previous periods’ manifested characteristics on industrialization and capitalization, as

Social work research Essay Example | Topics and Well Written Essays - 3000 words

Social work research - Essay Example Early diagnosis and interference in toddlers with learning disorders makes a considerable development in self-confidence and communal capability, which facilitates them in opening doors of chances in school and in the field of work.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Perin (1990) has shown in his work that the students with learning disabilities have above average or high intellectual capability. If they are provided with suitable support and instructions, then they can succeed in college academic programs. The community care has been provided to the students with learning disabilities in New York. The faculties of City University of New York (CUNY) and State University of New York (SUNY) have emphasized on the need of the students with learning disabilities (Perin, 1990, p. 2). Adams, Dominelli and Payne (1998) have debated that the communal worker’s main concern is ensuring that the public can handle or deal sufficiently with their lives. Under this approach, the community workers do not approve a theraupetic-helping role. Their involvements are much more practical –generally passing on information about sources and potentials (Adams, Dominelli and Payne, 1998, p. 4). The stress on effects in the present competency –based strategies to social work is reliable to an ethical point of view that ignores procedures. The practitioners essentially want to avoid this position that follows the anti-oppressive strategies (Adams, Dominelli and Payne, 1998, p. 8). Humphries (2000) portrayed that in a social model, disabilities arise from society’s breakdown to meet the obligations of the disabled individuals. It has been debated that conventional positivist and empirical research examples are repressive and alienating to loads of research subjects. It often deprives people and not leads to any development to their material situations (Humphries, 2000, p. 110). Lowes and Hulatt

E-Business Assignment Example | Topics and Well Written Essays - 4750 words

E-Business - Assignment Example Moreover, we have developed a Blog on the same lines with the website. The report presents the development process of the Cafe Cuisine website, accompanying Blog, the models employed for designing the website and the business strategy utilized for the website. Analysis In the analysis phase of the website development process, we have analyzed the requirements of the website and differentiate these requirements into the functional and non-functional requirements. We analyzed on how the website would help to achieve the organizational objectives by assessing already developed food / restaurant websites. One of the important items is to identify the targeted audiences of the website along with the development of the web contents. Moreover, in the analysis phase of the web development process, we have analysed the software development tools required to develop the website. After thorough assessment the following non-functional requirements of the website have been identified which we hav e accommodated in the developed website (Vandeuren, 2012): The food website should be conformed the guidelines provided by the World Wide Web (W3) Consortium. The website should be developed and comply with the Hypertext Mark-up Language (HTML) version 5.0 Compatibility of the website must be ensured with all the major web browsers include: Firefox, Google Chrome, Netscape, Internet Explorer, and Opera. The web pages of the restaurant website can be viewed fully at 125 % zooming in all the major web browsers. The web pages of the restaurant website should be displayed properly on a computer having resolution set to 640 x 480 pixels. It is required that the restaurant website should be developed incorporating appropriate search engine optimization (SEO). From the typical non-functional requirements, we have concentrated on the security, regularity, data integrity, maintainability, availability, reliability, manageability, and the performance for the restaurant website. One of the cri tical non-functional requirements of the website is usability, the customers / users should be able to use the website with ease. Moreover, it is required that the dashboard design of the proposed website should be simple, easy to use and understand. The targeted audience of the website are the people used to have restaurant’s food regularly or frequently. The age of these people lies between 16 - 45 years. The audience can be professional as well as a novice web user who understands email and how to use a web browser. Moreover, the targeted audience is the people who can access the internet every day and any time. There are several tools and website development languages which are required for the development of a prototype (website). These include but are not limited to the XML, HTML, XHTML, Dreamweaver, JavaScript, CSS and Flash. In order to develop the food website, we have used Hypertext Mark up Language (HTML) version 5, Adobe Dreamweaver, JavaScript and Cascading Style Sheet (CSS). The Adobe Dreamweaver has been used to develop the user interface of the website and industry standard for designing the website. It also provides ‘What You See is What You Get’ (WYSIWYG) interface which is easy to use. Moreover, developing and editing the HTML5 as well as the cascading style sheet (CSS) is much easier by using Adobe Dreamweaver. We have used the JavaScript to validate the inputs provided by the users of