Internal Control

Internal control has two main goals. The first goal is to protect assets from robbery, employee theft, and other misuse. The second goal is to ensure the reliability and accuracy of the accounting records. This step is to reduce the risk of intentional or unintentional errors in the accounting process. The Sarbanes-Oxley Act came into force in 2002. This bill was introduced as a result of a series of accounting scandals that caused investors to lose billions of dollars.

Internal controls and procedures for financial reporting (serious inadequacies in the design or operation of internal controls, serious inadequacies in internal controls, and significant management with or without significant control from other managers or internal employees Including fraud) Also, regarding receipt, retention and handling of complaints received by the company concerning audit matters including employee's concerns regarding company accounting, internal accounting management, or suspicious accounting procedures and anonymous submission procedures

In many cases, people consider internal control to be equivalent to the concept of trust, so if practices violate or avoid internal controls, they challenge employees and other people. An accounting system where internal controls are ignored or does not exist creates an environment in which corruption can not be avoided. Storage, recording, storage and checking / auditing of cash or cash equivalents (checks, credit cards, gift cards, etc.) should be done by another individual as much as possible. This is particularly difficult in one small organization. - Have a good digital head and volunteer 'care book'

The control environment is based on the management of attitudes towards internal control. It is the basis of all other elements of the internal control system. In a statement on Auditing Standard No. 78 of the American Institute of Certified Public Accountants, the controlled environment "defines the tone of the organization and affects the sense of people's control, which is the basis of all other elements of internal control, discipline and structure We will provide. " A management concept focused on building a sound business process and operational management often creates a stronger internal control environment than does not understand internal control or does not care about it.