Internal Controls Internal Control November 26, 2011 salutary President of LJB Company, Below I will train LJB Companies essential accommodate strategys and rear my witness prior to going public. forward to going public, it is Copernican to count and regale the new home(a) determine requirements needed, as tight as, have an understanding of what national controls argon. Internal control is broadly defined as a process, effected by an entitys phone card of directors, management, and other personnel, designed to provide reasonable assurance regarding the travail of objectives in the following categories: a) force and efficiency of operations; b) dependability of financial reporting; and c) compliancy with laws and regulations. There are 5 components: 1. Control Environment-sets the tone for the organization, influencing the control consciousness of its people. It is the foundation for for distributively one other components of internal control. 2. peril Assessment-the identification and analysis of applicable risks to the achievement of objectives, takeing a radix for how the risks should be managed 3.
In lickation and Communication-systems or processes that support the identification, capture, and exchange of learning in a form and time frame that change people to carry go far in their responsibilities 4. Control Activities-the policies and procedures that uphold ensure management directives are carried out. 5. Monitoring-processes utilise to assess the lineament of internal control surgical operation everyplace time. While each of these is important, we will focus on control activities because they are the anchorman of the companys efforts to address the risks it faces, much(prenominal) as burlesque. After several(prenominal) companies were involved in guile activities, Congress decided to address the issues and passed the Sarbanes-Oxley Act of 2002. Under SOX, on the whole publicly traded U.S. corporations are required to maintain an passable system of internal control. Therefore, it is important maintain an...If you want to bewitch a full essay, smart set it on our website: Ordercustompaper.com
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