Internal Control
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- Category: Politics: Economics
- Date Submitted: 10/15/2010 10:13 AM
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Sophia Golden
XACC/280Version2
October 10, 2010
Steven German
Internal Controls
The Internal Control is when a company choose to monitor itself and by monitoring itself the company can increase their decision that certain goals will be met and ensure that the efficiency of operation and legal compliance. The two main goals of the Internal Control are the SAC which stands for Systems Auditability and Control helps the internal auditior relates to the information system and technology (e notes.com). The other main goal is the Cobit it focus on efficiently and monitoring the information systems. It plays the role and impact on the It control and relates to business processes (e notes.com).
The Sarbanes –Oxley Act of 2000 affected the Internal Control by the pertain of maintenance records that reasonable detail it accurately, fairly reflect on transactions, and dispositions of assets of the registrant, processing under supervision the registrants principal executive and financial officers. Anyone performing functions may be effect by registrant board of directors by registrant board of director. The Internal Control is also affected because without accurate inventory for fixed assets which is the solid financial reporting of corporate assets, without the fixed assets the Internal Control will go downstream. Once this happen the Internal Control can’t do anything to fix the inaccurate with the assets that was lost, stolen or taken from the services that continue to be depreciation and reported. To establish a good inventory of the fixed assets a company must be sure that the inventory will be conducted by using the same location methods. Some companies find bar-coding fixed assets as it place in the service to reduce errors to ensure physical inventories assets.
Some companies can experience a fall in the price of stock due to the release of information about the Internal Control weakness, this is when the stock price is reported below and should be...
XACC/280Version2
October 10, 2010
Steven German
Internal Controls
The Internal Control is when a company choose to monitor itself and by monitoring itself the company can increase their decision that certain goals will be met and ensure that the efficiency of operation and legal compliance. The two main goals of the Internal Control are the SAC which stands for Systems Auditability and Control helps the internal auditior relates to the information system and technology (e notes.com). The other main goal is the Cobit it focus on efficiently and monitoring the information systems. It plays the role and impact on the It control and relates to business processes (e notes.com).
The Sarbanes –Oxley Act of 2000 affected the Internal Control by the pertain of maintenance records that reasonable detail it accurately, fairly reflect on transactions, and dispositions of assets of the registrant, processing under supervision the registrants principal executive and financial officers. Anyone performing functions may be effect by registrant board of directors by registrant board of director. The Internal Control is also affected because without accurate inventory for fixed assets which is the solid financial reporting of corporate assets, without the fixed assets the Internal Control will go downstream. Once this happen the Internal Control can’t do anything to fix the inaccurate with the assets that was lost, stolen or taken from the services that continue to be depreciation and reported. To establish a good inventory of the fixed assets a company must be sure that the inventory will be conducted by using the same location methods. Some companies find bar-coding fixed assets as it place in the service to reduce errors to ensure physical inventories assets.
Some companies can experience a fall in the price of stock due to the release of information about the Internal Control weakness, this is when the stock price is reported below and should be...