Internal Controls

indwelling Controls XACC_280 Internal Controls Internal controls make sure that any(prenominal) public companies adhere to a standardized set of rules of knead and reporting procedures of finances in business. It is required by entrust of law to monitor the different models of internal controls. internal controls base be defined as actions and procedures by which a phoner monitors itself, Renee OFarrell (2012). The both primary goals of internal controls are to safeguard assets from stealing and illegitimate use, and to enhance the accuracy and reliability of community chronicle memorialises 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 sanctioning responsibility when it comes to the physical, electronic, and mechanical controls; sequestration of duties, and besides independent internal verificatio n. These internal controls help to establish a personal sense of responsibility among employees when reporting monetary records. By holding all individuals employed by the company amen competent-bodied for their actions when reporting and recording documents, individual employees are ofttimes less(prenominal) likely to take a chance in warp in pretendation in documents.

It is the accuracy and truth in a companys financial documents that allow shareholders to make the take up financial decisions regarding their investments in the company, (Internal Controls, 2012). Without a set of standardized and universa lly accepted internal controls, companies an! d financial institutions alike would be able to withhold key financial in digitation from the public and regulatory bodies. The Sarbanes-Oxley Act of 2002 was created to make sure that scandal(s) such as the slip 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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