The Sarbanes Oxley Act: Internal Controls Which Help Business

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Internal Controls are to be an integral part of any organization's financial and business policies and procedures. Internal controls consists of all the measures taken by the organization for the purpose of; (1) protecting its resources against waste, fraud, and inefficiency; (2) ensuring accuracy and reliability in accounting and operating data; (3) securing compliance with the policies of the organization; and (4) evaluating the level of performance in all organizational units of the organization. Internal controls are simply good business practices (Strauss, 2003). And, since internal controls can have many more meanings in the world of accounting, the more we understand what were dealing with, the better we can analyze internal…show more content…
With the internal controls in place, there should be no problem being in compliance with all laws and regulations. An accounting system affords companies the luxury to be able to use their financial information whenever they need it, by it being store at a convenient location. There are three divisions within the accounting method; analysis, design, and implementation must be complemented with a system of control. This control is another system within a system that is design to ensure success of the accounting systems. Internal controls keeps business safe, preventing someone from committing fraud or abusing the system; this way the information that is store in the system is kept accurate and reliable. Part of internal controls is who are responsible; physical, mechanical, and electronic controls; there must also be segregation of duties, and independent internal confirmation. One thing we know is that not everyone is trustworthy and has high morals. Just like there are dishonest customers the same can be say for workers of a company. A company must have internal controls that can help them identify both dishonest employees as well as customers. Employee thief cost the company more because of the time and the extra internal controls that must be put in place not to mention

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