Internal Control
Internal Controls
XACC/280
Whenever having a company, he or she must have the right aspects so that business can run as smoothly as possible. The existence where not having the company together as supposed to, then there are problems that can follow. Internal control is the safeguard of the assets and the accuracy along with able to rely on he or she’s accounting records and the guide to success is making sure that he or she follows the control principles. The two sentences before this is the knowledge needed and to enter these concepts to he or she company. To understand what this means for companies to protect his or her assets not just from the factors, but also outside the business. The protection from employees that work the company is a must which is most likely to happen. It’s unfortunate that there are an employee that does this and the company loses out with employees stealing and getting paid to work.
Internal controls help to make sure that accuracy and accuracy of the records will help to prevent loss through employees stealing from the company. When having accurate records, a company is able to decrease mistakes made and catch potential issues while they occur. When having security for the company will help with preventing the loss of equipment and merchandise. The Sarbanes-Oxley Act of 2002 was affected and made sure the company’s internal controls are accurate and effective. SOX compliant were seen by investors as more dependable and most likely to be trusted. SOX auditors have uncovered mistakes that can also save the business money as well. If a company let it be known of deficiencies in its internal controls, then this would probably have a fall in stock because the investors would be nervous that the company was not handling its financial operations accurately.
Investors will probably think that the company’s possibly losing out on money. Another important factor is other investors see this then will probably not want to buy stock
XACC/280
Whenever having a company, he or she must have the right aspects so that business can run as smoothly as possible. The existence where not having the company together as supposed to, then there are problems that can follow. Internal control is the safeguard of the assets and the accuracy along with able to rely on he or she’s accounting records and the guide to success is making sure that he or she follows the control principles. The two sentences before this is the knowledge needed and to enter these concepts to he or she company. To understand what this means for companies to protect his or her assets not just from the factors, but also outside the business. The protection from employees that work the company is a must which is most likely to happen. It’s unfortunate that there are an employee that does this and the company loses out with employees stealing and getting paid to work.
Internal controls help to make sure that accuracy and accuracy of the records will help to prevent loss through employees stealing from the company. When having accurate records, a company is able to decrease mistakes made and catch potential issues while they occur. When having security for the company will help with preventing the loss of equipment and merchandise. The Sarbanes-Oxley Act of 2002 was affected and made sure the company’s internal controls are accurate and effective. SOX compliant were seen by investors as more dependable and most likely to be trusted. SOX auditors have uncovered mistakes that can also save the business money as well. If a company let it be known of deficiencies in its internal controls, then this would probably have a fall in stock because the investors would be nervous that the company was not handling its financial operations accurately.
Investors will probably think that the company’s possibly losing out on money. Another important factor is other investors see this then will probably not want to buy stock
References: Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2008). Financial accounting (6th ed.). Hoboken, NJ: Wiley.