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Internal Controls
Organizations have the responsibility of accounting for all of their financial and operational data in an effective and efficient manner that is in compliance with all regulations as well as industry practices. Having a set of internal controls in place can help streamline an operation which provides a level of efficiency as well as offers protections again various risks. The SEC has been in an increasingly important role and has received increased power in 2002 when legislation for the Sarbanes-Oxley Act was passed. Although most of the rules and regulations under this act affect only publically held companies, many of the required accounting procedures can serve as best practices for companies that are not publically owned.
Quality assurance is generally one of the most important aspects to constructing a set of internal controls. Internal controls can assist with analyzing processes and monitoring operations to ensure that high quality standards are being met at all times. There are many types of internal controls that can be used to meet these objectives and to monitor quality. By keeping data on internal procedures and constructed...
Problems in the insurance industry can escalate quickly if there is any errors and having a set of internal controls helps protect the organization from these risks.
There different categories of risk objectives which include strategic objectives, operational objectives, reporting objectives, and compliance objectives (COSO, 2004). Any organization can adopt a COSO Enterprise Risk Management (ERM) framework, or parts of such a framework, for risk management. The COSO can be constructed in a way that complements the existing organizational goals. It is also important that the internal controls processes become integrated into the organizations culture. Most organizations will have a limited number of internal controls that are focused on the organizations top priorities and the relevant risks associated with those.
To construct a set of internal controls most organizations will designate a steering committee or put together a project team to guide the implementation. This group will be ultimately responsible for first building an inventory of the…
Works Cited
COSO. (2004). Enterprise Risk Management. Treadway Commission, 1-7.
SSAB. (N.d.). Internal control and risk management. Retrieved from SSAB: http://www.ssab.com/Investor -- Media/Investors1/Corporate-governace/Internal-control-and-risk-/
Internal controls are "methods put in place by a company to ensure the integrity of financial and accounting information," and to protect the organization's assets from misappropriation by internal sources (Investopedia, 2013). Internal controls help to prevent fraud, but they also allow the company to have reliable data on all transactions, which can be used for any number of control purposes. Further, internal controls promote operational efficiency and they encourage adherence
Internal Controls Companies need to be aware of the varying influences that are acting upon their organization. One method of examining the current situation is to divide the perception into ideas and influences that are arriving from the external environment and those that are internally controlled. Internal controls are important because they rely on leadership, courage and skill for these actions to take hold. The purpose of this essay is to
Internal Control In the United States, all corporations planning to go public have to maintain an adequate internal control system. LJB is a small company that does local distribution and wants to go public. The president has decided to get an independent audit firm to carry out the assessment while identifying its areas of weakness. In case failure is reported by this audit firm, it could be fined or the officers
Internal Control The Importance of Internal Control Programs An effective internal control program in an organization ensures the efficiency of its operations and helps a business to attain its objectives by minimizing the chances of violation of rules and regulations by the employees. It safeguards the organization's assets and promotes the reliability of the accounting and financial information. Failure to implement an effective internal control program results in a corporate culture in
Organizational Responsibility and Current Health Care Issues Ethics is the assessment and research of the human habits in regard to moral concepts, particularly those in a certain team, occupation, or specific organization (The Free Dictionary, 2012). People deal with lots of ethical/moral problems everyday and how they react might result in significant and legal ethical/moral ramifications. In the healthcare market, having approaches for making ethical/moral choices is a necessary part of
The CEO of ENRON attempted to give a rosy picture of the company financial position to protect his own investment in company shares. As a part of internal control, the accounting function and actual physical stocks should not be managed by the same person. This removes the temptation of cooking the books and allowing the stock to disappear without anyone noticing the fraud. Protecting computer records through limiting access to accounting