The Sarbanes-Oxley Act: Protecting Corporate Assets

1024 Words3 Pages
Internal Controls. Kind of like a brick wall, or a fire wall on a computer. Internal controls act as a way to keep a company and its assets safe, as well as make sure that the company maintains complete and accurate accounting records. Internal controls are in charge of the overall well being of a company from its assets to its employees, even to its sales and reputation. A lot of things are involved with internal controls such as; Sarbanes-Oxley Act, stock well being, well being and safety of assets and accounting accuracy. One of the Internal Controls main purposes is that of keeping a companies assets safe, whether that be from employees, robbers, or misuse from outside parties. As one can figure keeping a companies assets would be a very important task that would keep a company running smoothly and successfully if all went well. Internal Controls will work to maintain the safety of all assets of a company by assuring no unauthorized use or access, and keeping close watches over all records and information. Another main task of the internal control is that of keeping the accounting records up to date and accurate at all times. In the past months there has been quite a bit of emphasis on the importance of a company keeping complete and accurate accounting records for many reasons. A companies well being may depend on its records accuracy, if there happen to be a problem spotted a simple solution would be to revert back to the records, but what if the records are inaccurate, or incomplete? It is extremely important that Internal Controls keep close watch over the accuracy of the companies accounting records of all forms. The Sarbanes-Oxley Act of 2002 or SOX was created by the governments sector of Public Compan... ... middle of paper ... ...d to companies loosing billions of dollars to those unethical practicing members of a company. As one can see internal controls in a company can make or break a company. With all participation and strict principals internal controls can provide a great basis for a company and catch all errors to ensure a smooth run for a company and avoidance of any scandals. With a loose internal control system or unethical practices a company can get a bad wrap, loose customers and investors, loose profit and assets, as well as loose all reputability. There will always be problems within companies, but with the close running of a company’s internal control and ethical practices, government involvement, and outside audits and over views a company can lower their risk of loosing anything valuable to their company, and staying out of the public’s eye in a negative manner.
Open Document