Organizational Structure/Control Mechanisms
Most companies evolve into a particular structure. As the company grows it is important to ensure that every function is managed. As time goes on the company reviews the structure and changes to meet the needs of the organization.
Johnson & Johnson is deeply committed to the heritage of decentralized management. The decentralized operating companies, affiliates and business segments are brought together in an organization structure that ensures that their activities align with overall strategic objectives This approach sets J&J apart from many other companies their size and enables them to proudly serve as the world's most comprehensive and broadly based manufacturer of health care products.…show more content… Under Section 404 of The Sarbanes-Oxley Act of 2002, management is required to assess the effectiveness of the Company's internal control over financial reporting. Internal controls over financial reporting are limited and can provide only reasonable assurance with respect to financial statement preparation. Therefore, it may not prevent or detect all misstatements. Moreover, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. The auditor's responsibility is to express opinions on management's assessment and on the effectiveness of the Company's internal control over financial reporting based on the audit (Johnson & Johnson 2006).
For example, The Audit Committee of The Board of Directors has established procedures to receive, retain and treat complaints regarding fiscal improprieties, accounting, internal accounting controls or auditing matters and to provide for the confidential, anonymous submission by employees of concerns regarding questionable accounting or auditing matters. Employees may submit good faith complaints regarding accounting or auditing matters without fear of dismissal or retaliation of any kind (Johnson & Johnson Investor Relations, 2006). All employees are responsible for