Accounting

LJB Company is should be following the laws that fall under 'Public Company Accounting Reform and Investor Protection Act' know by the United States Senate and 'Corporate and Auditing Accountability and Responsibility Act' which is known by the United States House but more commonly called Sarbanes–Oxley, Sarbox or SOX which is the United States Federal Law. SOX are for all public traded United States corporations which are required to maintain an adequate system of internal controls. Corporate executives and boards of directors must ensure that these controls are reliable and effective.

Businesses who transform from private to public require more extensive planning and preparation. Because LJB Company is a small organization management should reevaluate the costs versus the benefits of being a public traded company. LJB Company should answer the following questions before deciding to issue stock.

* How many shares should be authorized for sale?

* How to issue the stock?

* What value should be assigned to the stock?

Internal control report is based on the related methods and measures adopted within an organization to safeguard its assets, enhance the reliability of its accounting records, increase efficiency of operations, and ensure compliance with laws and regulations. The major independent components and variables of the internal control system should include:

* Control environment

* Risk assessment

* Control activities

* Information and communication

* Monitoring

If LJB Company decides to go public in the near future there are some new internal control requirements to be aware of. The most basic component of the internal control system is the company management/leadership in the control environment. In our opinion, it is the responsibility of top management to make it clear that the organization values integrity and that unethical activity will not be tolerated. The second component of the internal control system is...