Xacc/280 Week 8 Internal Controls

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Internal Controls It is necessary for companies to have internal controls that want to be able to succeed in the marketplace and for them to avoid possible pitfalls that can be the demise of company. Internal controls are set in place not only to protect the consumers but they are also for there to help companies succeed and reaching goals and what they are setting forth as objectives in an effective and efficient manner. Each of the specific objectives is measured by the recorded transactions that are relevant to that objective. The main goal of internal control is safeguarding assets. It has two sub goals which are safeguarding from employee thefts and safeguarding from unauthorized use. These goals are in place to help ensure reliability and accuracy in accounting data. The purpose of internal controls is to help a company meet its stated mission as well as to avoid obstacles that stand in the way by giving access to information that allows a company to evaluate their progress and maximize the use of their resources effectively. It allows managers and administrators to respond in a fast manner to changes in the competitive and overall economic climate and modify their operations through the use of standardized, regulated information. ( Weygandt,Kimmel & Kieso, 2008) It is more than quite obvious that in business dealings all parties involved for do not always conduct themselves in an ethical manner. The same can be said about employees as well as consumers. There are internal controls set in place when you have employees that are dishonest or simply inefficient so that they can be quickly identified for their wrong doings. On the other hand, there are internal controls that can reveal honest mistakes when necessary. While inputting entries and reviews, it is possible that an accountant or employee can make an error. The way that this uncovered and

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