Sarbanes Integrate Oxley Act: Internal Controls

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Internal controls have been on the controller’s radar from the decade. Companies can prove the validity and integrity of their financial information through the completion of the annual report each year by establishing and documenting internal controls. The Sarbanes‑Oxley Act needs companies to establish and utilize an internal control that allows senior management to effectively communicate with the board of directors, and to assure investors that the company’s financial statements are reliable. Therefore, it requires management to evaluate the effectiveness of the company’s disclosure controls and procedures on a quarterly basis. The Sarbanes‑Oxley Act also requires that company's external auditors independently review management's assessment of internal controls and document any material weaknesses the audit firm determines.

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