Internal Policies and Procedures

1406 Words6 Pages
ETH 557 Accounting Ethics Internal Policies and Procedures Internal policies and procedures are essential in developing an internal control framework, guiding operational processes, creating a safe working environment, and code of ethics to ensure an organization’s objectives are met accurately, safely, and ethically. An organization’s internal policies and procedures should be formally documented and given to employees for reference regarding what is expected of them as employees. Organizations develop internal policies and procedures to govern the behaviors of company employees. Additionally, internal policies and procedures are designed to protect an organization’s assets, minimize costs, maintain compliance, enforce internal controls, and provide a learning culture (Bianca, 2013). This paper will focus on internal policies and procedures for business contracts, electronic communications, and document retention related to these items. Business Contracts When creating a business contract, firms must create policies and procedures to run the business. Business policies and procedures must be clear and concise. Company policies represent the company’s operational goals and vision for success. Policies are expected to be followed by all employees and should include the consequences and repercussions of any policy violations. Policies A business or organization may have several policies specific to operational situations. Policies must be considered in contracts and agreements between the company and the consumer, which are written business agreements. 1. All contracts will be formulated using the template-based contract structure provided. Any deviation will need prior approval before being viable to ensure compliance with internal policies. 2. All contracts will be stored in a central, secured file room. Access to the file room will
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