Accounting Internal Controls

When we think about accounting and auditing we never think about the standards in which this practice must follow. This system of standards is called the internal controls. These controls will help reduce or eliminate fraud. In business, all organizations have to have a way to protect their assets, both physical and intangible. These internal controls help to do this without hindering the everyday work flow and have also helped companies to achieve specific goals.

The two major bodies that regulate these internal controls in the United States are The Public Company and Oversight Board and The Financial Accounting Standards Board. If we were to think about how the world complies with internal controls we would look to the International Accounting Standards Board.   These organizations were developed to help keep companies internal controls inline and also to help reduce fraud.

The Financial Accounting Standards Board (FASB) was established in 1973 and has been the designated organization in the private sector for establishing standards of financial accounting. The standards set by this organization are recognized by the SEC for nongovernmental entities. (fasb.org, 2012)

The Public Company Accounting Oversight Board (PCAOB) is the regulatory body for auditing in the United States. They are a non-profit organization that was created by the Sarbanes-Oxley Act of 2002, (pcaob.org, 2012) The main job of this organization is designed to oversee the auditors of public companies. The PCAOB also “protects the interest of the investor and the public by promoting informative, accurate, and independent audit reports.” (pcaob.org)

The International Accounting Standards Board (IASB) is the regulatory body for the global accounting community. They are located in the United Kingdom and they are a privately-funded, independent board which sets the financial standards for the globe. (answers.com) This organization works to set a single set of high quality,...