Xacc 280 Internal Control Research Paper
Internal Controls
XACC 280
By
University of Phoenix
Professor
This paper will discuss the internal controls and how they work in business. I will shed some light on the organizations financial and business policies, process and procedures. The purpose of these internal controls is to protect the company’s resources against fraud, misappropriate funds and most important waste. A company can spend quite a bit of money that does not make the company any profit. This paper will examine all aspects if internal controls and their functions.
When we look at the world of internal controls, there are two main goals for internal controls in a company. First is to ensure …show more content…
Alternative weakness to internal controls would be conspiracy. There could be employees that are in synergy (finance and or accounting departments) can alter the financial material that neither would be captured by an internal control. This is something that took place in companies like Enron and MCI WorldCom. With all the internal controls set in place, there can still be errors like human errors.
Controls are set in place so the company is protected. This would include things like from theft, fraud and other things that could damage a company and cause a lost in stock price. Sarbanes Oxley was created to safeguard the company and their records are fortified. Business’ that do not follow internal control procedures will lose money an ultimately not be able to keep their doors open. Companies have to understand that there are restrictions to internal controls. Internal controls are most important and have to be in place for a company to grow and have some type of
XACC 280
By
University of Phoenix
Professor
This paper will discuss the internal controls and how they work in business. I will shed some light on the organizations financial and business policies, process and procedures. The purpose of these internal controls is to protect the company’s resources against fraud, misappropriate funds and most important waste. A company can spend quite a bit of money that does not make the company any profit. This paper will examine all aspects if internal controls and their functions.
When we look at the world of internal controls, there are two main goals for internal controls in a company. First is to ensure …show more content…
Alternative weakness to internal controls would be conspiracy. There could be employees that are in synergy (finance and or accounting departments) can alter the financial material that neither would be captured by an internal control. This is something that took place in companies like Enron and MCI WorldCom. With all the internal controls set in place, there can still be errors like human errors.
Controls are set in place so the company is protected. This would include things like from theft, fraud and other things that could damage a company and cause a lost in stock price. Sarbanes Oxley was created to safeguard the company and their records are fortified. Business’ that do not follow internal control procedures will lose money an ultimately not be able to keep their doors open. Companies have to understand that there are restrictions to internal controls. Internal controls are most important and have to be in place for a company to grow and have some type of