Corporate Financial Internal Controls

Whether a business is privately or publicly owned, set under a number of United States Government ossification laws, corporations should follow due diligence and incorporate internal tick offs to get wind accountability in their financial reports. Management is the starting signal patronage of defense in maintaining the truthfulness in finance of the company. Managers must(prenominal) be alert to the accounting system that is at hand, without this first line aw arness, rudimentary protection of the company financial reports would be at risk.

In being in the trenches, so to speak, managers hire to know the features of the accounting systems that are in use at the company and its controls ( Noordin, 1997). Some of these features include having reliable personnel with eject responsibilities, separation of duties, proper authorization, adequate documentation and cost earn analysis ( Noordin, 1997). Record keeping is absolutely an essential in conducting business, whether the company is enterprise or small business, records are the vegetable marrow of maintaining accountability in day-to-day activities.

Having effective internal control techniques is important in keeping the company books ?under control,? and companies are including the specific controls that are employed in their one-year reports, this is considered a good corporate governance practice (Willis, et al, 2000).



Even the credentials Exchange Commission (SEC) and Financial Accounting Standards Board (FASB) do not require the publishing of the internal controls in the annual report of the company. Over the last ten years, auditors and preparers have reached treaty on some of the routine internal control items to be included in the annual reports (Willis, et al, 2000). These reports now include the pursuance topics within the body of the published works: Financial rehearsal presentation; Purpose, nature and components of the company?s internal controls; bureau of the internal audit, role of the audit committee, role of the independent auditor...

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