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Internal Controls

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Internal Controls
Caryn Baret
3/13/2013
Jana Howie

Internal Controls 3
Internal Controls Internal controls are safeguards that a company uses to protect their financial information. Their safeguards can be universally accepted or can be unique to one company. Internal controls center around the company's accounting information system, which is the primary function used for moving financial information around a company. Internal controls help many companies to direct, monitor, and measure the effectiveness of their accounting operations. Internal controls will often focus on limiting the abuse or fraud that may be made by employees. They also provide owners and managers with reasonable assurance that all the financial statements are done right, correct and on a timely manner. Owners and managers may use the internal controls to limit the number of people who can have access to the company's information systems. The will help limit the opportunity for any abuse on this information. The owners, managers, and supervisors may take the role when enforcing the internal controls, to keep them in charge of the information system. Internal controls are usually at the organizational and transaction level of the company’s information systems. Organizational level ensures the company will follow all the standards, law and regulations. Transaction level controls ensure each accounting process will achieve the company's goals and objectives. Primary Goals for Internal Control There are two primary goals for internal controls. The first one is to make sure the companies assets are safe. This may include theft, robbery, fraud, and any unauthorized personal getting a hold of any assets. The second one is to make sure the

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