Internal Controls

indwelling Controls XACC_280 Internal Controls Internal controls make sure that all public companies adhere to a standardized set of rules of achievement and reporting procedures of finances in business. It is required by determineula of law to monitor the different models of internal controls. internal controls female genital organ be defined as actions and procedures by which a confederacy monitors itself, Renee OFarrell (2012). The both primary goals of internal controls are to safeguard assets from stealth and illegitimate use, and to enhance the accuracy and reliability of confederacy score infixs to neutralize errors and irregularities in the accounting process. Establishing responsibility in record retentivity is another important topic that needs to be addressed. Internal control principles include makeing responsibility when it comes to the physical, electronic, and mechanical controls; requisition of duties, and besides independent internal verif ication. These internal controls help to establish a personal sense of responsibility among employees when reporting fiscal records. By holding all individuals employed by the company amen adapted-bodied for their actions when reporting and recording documents, individual employees are ofttimes less(prenominal) likely to take a chance in fudge in pretendation in documents.

It is the accuracy and truth in a companys financial documents that allow shareholders to make the cornet financial decisions regarding their investments in the company, (Internal Controls, 2012). Without a set of standardized and univers ally accepted internal controls, companies a! nd financial institutions alike would be able to withhold key financial information from the public and regulatory bodies. The Sarbanes-Oxley Act of 2002 was created to make sure that scandal(s) such as the docking with Enron and WorldCom financial scandals from ever happening again without some form of disciplinary action. The Sarbanes-Oxley Act makes it mandatory to punish corporations that withhold financial information...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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