US FIN 324 - Internal Controls Paper

Internal controls are in place to reduce or mitigate operational risks within an organization. In the past, most organizations adopted policies, procedures and budgets to assist their organization to run smoothly, however, since the large organizational scandals that have taken place at Enron, Tyco International and WorldCom and companies like them, the government has stepped in and created legislation under the Sarbanes-Oxley Act of 2002 which included a regulation for internal controls. Good internal controls are …

…and general policies. The system should be documented so that all personnel will know what is expected of them and will be properly trained to carry out their responsibilities. The policies should become part of a permanent business record. References: Coso.org, (n.d.). Coso home. Retrieved Feb. 27, 2006, from The Committee of sponsoring Organinzations of the Treadway Commision Web site: www.coso.org. Wikipedia.org, (n.d.). Sarbanes-oxley act. Retrieved Feb. 27, 2006, from www.wikipedia.org.