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ID number:927772
 
Evaluation:
Published: 08.05.2006.
Language: English
Level: Secondary school
Literature: n/a
References: Not used
Extract

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 important and valuable to an organization and its shareholders.

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