Safeguarding Assets: The SOX Act Essay examples -- The Sarbanes- Oxley

What is internal control? According to University of Phoenix, Axia College Internal simplicity and Cash (2009), internal control is all of the related methods and measures adopted at bottom an organization to safeguard its assets and enhance the accuracy and reliability of its accounting records. The principal(a) reasons for internal control are help companies protect their investments and merchandise against theft from everyone, including employees and to make sure that the accounting is done correctly and truthfully. There are six principals of internal control that apply to most enterprises. Establishment of responsibility- gives unaccompanied one employee responsibility over a certain task. Someone is less(prenominal) likely to steal if they are the only person that can be linked back to a task. Segregation of Duties- different people are responsible for related activities and record keeping for assets is kept separate from sensible custody of assets. Physical, Mech anical, and Electronic control- Physicalcontrols relate to the safeguarding of assets, examples would be safes and locks. Mechanical and...