Xacc 280 WK 8 Assignment - Internal Controls-Mark Spencer

Xacc 280 WK 8 Assignment - Internal Controls-Mark Spencer -...

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Principles of Internal Controls Mark Spencer Axia College ACC 280
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Principles of Internal Controls Every company or organization must have in place internal controls that help safeguard the asset's and ensure that they avoid any unnecessary loss or unexpected liabilities. Every group has established internal controls that enable them to reach specific goals or objectives. Within the following paragraphs, I will explain the impact the Sarbanes-Oxley Act of 2002 has had on internal controls. I will also discuss some of the limitations of internal controls and how the lack of internal controls can cause a fall in the stock price. The two main tasks of internal controls are to safeguard the company assets from theft and the eliminate the unauthorized use of company assets. These two objectives ensure the accuracy and the reliability of the accounting data. The quick explanation is simple; internal controls are put into place by a business to reach a goal and to avoid any unwanted or unnecessary scrutiny by enhancing their understanding of the performance objectives without any loss of revenue. Management can track the changes the economic and competitive environment and the fluctuations in demands and priorities by the laws and regulations are adhered too. Unfortunately, not everyone that you hire or work with is honest. This is the simple fact of doing business. It is not only employee's that can be dishonest, but customer can be just as dishonest, if not more so. However, the fact that a series of checks and balances have been put into place, can help to identify the customer or the employee that is dragging down the profitability of the business through dishonest behavior or through poor work performance. Simply mistakes can happen while recording the daily transactions and the internal controls can
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Xacc 280 WK 8 Assignment - Internal Controls-Mark Spencer -...

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