Internal Control

In the United States, all corporations planning to go public have to maintain an adequate internal control system. LJB is a small company that does local distribution and wants to go public. The president has decided to get an independent audit firm to carry out the assessment while identifying its areas of weakness. In case failure is reported by this audit firm, it could be fined or the officers could go to prison. Internal controls help in detecting any errors in the report from accounts and also protect assets. This also helps in efficiencies as law and order is followed by the company operations (Tysiac 2012).

There have been human errors that are caused by over working or wrong assumptions by members of staff. There are also some fraudulent human beings who can rip off a company if it's not well protected internally. This allows the law to...
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