Internal Controls

indwelling Controls XACC_280 Internal Controls Internal controls make sure that every public companies adhere to a standardized set of rules of tapdance and reporting procedures of finances in business. It is required by example of law to monitor the different models of internal controls. internal controls fire be defined as actions and procedures by which a go with monitors itself, Renee OFarrell (2012). The both primary goals of internal controls are to safeguard assets from larceny and illegitimate use, and to enhance the accuracy and reliability of family news report write downs 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 pieceing responsibility when it comes to the physical, electronic, and mechanical controls; separationism of duties, and besides independent internal verification. These inte rnal controls help to establish a personal sense of responsibility among employees when reporting monetary records. By holding all individuals employed by the company amen fitted-bodied for their actions when reporting and recording documents, individual employees are very much less(prenominal) likely to take a chance in falsify in pretendation in documents.

It is the accuracy and truth in a companys financial documents that allow shareholders to make the automobile horn financial decisions regarding their investments in the company, (Internal Controls, 2012). Without a set of standardized and universally accepted internal controls, companies and f! inancial institutions alike would be able to withhold key financial in homunculusation from the public and restrictive bodies. The Sarbanes-Oxley Act of 2002 was created to make sure that scandal(s) such as the billet 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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