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Thus, when establishing an internal control program, the "good for all" must always be the objective. While internal control techniques define what is good for an organization, the employees who comprise an organization must therefore benefit that "good." And, what is good must always be in accordance to the values of ethics.
Define the Importance of the Sarbanes-Oxley Act
The importance of the Sarbanes-Oxley Act is apparent in the treasury management of corporations. According to Steven Krippner, on the purpose that Sarbanes-Oxley Act serves, it protects investors by improving the accuracy and reliability of corporate disclosure..."
The Sarbane-Oxley Act is important because it regulates and protects investors, especially those who file financial reports in accordance to the Security Exchange Act (Trema.Com). Fraud and white-collar crimes are similarly monitored and prevented by this Act. This is made possible by requiring managements to submit certified and accurate documents and disclosure of information.
Generally, the Sarbane-Oxley Act is important because it requires organization...
How it has became important to companies is indicated by Steven Krippner in his article, stating that some companies have found that implementation has provided them with an opportunity to improve controls, processes and especially reporting. In particular it has enabled them to introduce consistency in the way treasury addresses certain key activities and the controls around them, as required by the Act."
Bibliography
The Importance of Internal Control.
Retrieved on Dec. 22, 2004, from The Internet.
Web site: http://www.state.gov/documents/organization/17642.doc
Internal Control Standards.
Retrieved on Dec. 22, 2004, from The Internet. Web site: http://www.osc.state.nc.us/sigdocs/sig_docs/documentation/policies_procedures/icq/ICSTAND99.pdf
Krippner, S. The Importance of the Sarbanes-Oxley Act.
Retrieved on Dec. 22, 2004, from The Internet. Web site: http://www.trema.com/finance_online/10/2/trema-finance_line-10.2-Sarbanes-Oxley-Act.pdf.
Bibliography
The Importance of Internal Control.
Retrieved on Dec. 22, 2004, from The Internet.
Web site: http://www.state.gov/documents/organization/17642.doc
Internal Control Standards.
Retrieved on Dec. 22, 2004, from The Internet. Web site: http://www.osc.state.nc.us/sigdocs/sig_docs/documentation/policies_procedures/icq/ICSTAND99.pdf
Retrieved on Dec. 22, 2004, from The Internet. Web site: http://www.trema.com/finance_online/10/2/trema-finance_line-10.2-Sarbanes-Oxley-Act.pdf.
Other people simply want to live beyond their means and see committing fraud as the way to receive extra money so they can continue to live a lifestyle they would otherwise not be able to afford. If they are angry at their managers or hate their jobs, there is also the possibility of committing fraud simply to "get back at" the person or persons they feel have slighted them.
However, internal controls are more than just discovering errors and irregularities, controls go hand in hand with internal audits. Audits differ from controls in that an audit will provide "an objective, independent review of bank activities, internal controls and management information systems to help the board and management monitor and evaluate internal control adequacy and effectiveness" (Comptroller p. 2). Using audits and internal controls to provide information for the smoother and
Internal Control and Accounting Analysis of ABC Limited: Analysis of Weaknesses and Recommendations The report was prepared to cover the requirements of the AAT ICAS unit. The AAT ICAS refers to an Internal Control and Accounting System where the report serves as investigation of the weakness area of the business control and makes the recommendation to fix this problem. The following report reviews the restaurant business particular in payroll area. The
Transaction-Related Audit Objectives Auditing internal controls are processes instituted by companies to assist them accomplish specific goals and objectives (The Institute of Internal Auditors, 2004). In addition, internal controls help in directing, monitoring as well as measuring organization's resources. Internal controls are vital since they help firms prevent and detect fraudulent activities thus protecting important resources; both physical and intangible. In most organizations, internal control objectives correlate to reliability of financial
Discrepancies This case study is indeed correct in asserting that properly run inventories truly are essential to the functioning of any organization. Inventory discrepancies need to be eliminated aggressively in order for an organization to move forward. Furthermore, this case study was astute to assert that such discrepancies could be avoided by examining past mistakes and working hard to fix them. Furthermore, the cases study was also wise to point
The amount and complexity of information created and overseen by the auditors in terms of expenses, earnings, and taxes will also increase. The ongoing growth of global organizations is also demanding greater auditing expertise concerning international laws and trade in addition to international mergers and acquisitions. Following Enron and the other financial scandals, Congress passed laws to curtail organizational accounting fraud. This legislation requires public companies to maintain established internal