Xacc/280 Internal Controls

698 Words3 Pages
Internal controls By: Diana Clavijo XACC/280 1. Internal controls consist of methods and measures that must be adopted by any business or company it is what is needed to keep any dishonest behavior from happening such as stealing or any type of frauds from occurring. Internal control safeguards the company’s assets and also enhances the reliability of its accounting records; internal controls were created to govern a company’s financial records. In my personal opinion this is something that can definitely help a company from any fraudulent behavior and reduces the amount of errors that it can have in the financial records, Internal controls helps a company keep their assets safe which is what is most valuable in any type of business. Without internal controls dishonest work would keep recurring thanks to…show more content…
If a company’s internal controls are not working properly customers and investors will be more doubtful and have second thoughts on their investments and money being safe which will lead to having less investor and the stocks will drop. It is very important for companies to have their internal controls up to date and making sure they are working properly because this can cause major setbacks financially. But there are some instances were internal controls cannot even stop unethical behavior from happening such as shoplifting in a shopping mall or even a bank
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