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...
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