Assignment Internal Controls D Rexford 1 Day Late

Assignment Internal Controls D Rexford 1 Day Late -...

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Introduction This paper will explain the internal control, two primary goals and its effect of Sarbanes- Oxley Act. It will also discuss how a company would experience a fall in the price of their stocks when they announce deficiencies. Internal Control Definition The checking, verifying and reporting methods used to establish this reliability is called the internal control system. It is these internal controls that ultimately protect the assets of the business. An organized and correctly constructed system will have internal controls that check and confirm the operation of other internal controls. In small businesses, where it is not possible to have an internal control system structured as extensively as in a large business, these backup controls are the only line of defense. The internal control system attempts to control the balance between natural errors and deliberate fraud. The importance of regarding internal control as a system is that it emphasizes the relationship the system components have to each other. Primary goals The primary goals of an internal control system are safeguarding of assets, compliance with regulations, and data integrity. Its goal is to decrease the risk of waste, abuse, fraud and errors and provide quality products and services. Internal controls are an essential element of some organization’s fiscal and business
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This note was uploaded on 11/06/2010 for the course BUSINESS XBIS/219 taught by Professor Ray during the Spring '10 term at University of Phoenix.

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Assignment Internal Controls D Rexford 1 Day Late -...

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