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Internal controls are an important asset to all companies especially companies that wish to maintain their accuracy and security. These controls help protect from certain situations such as robbery, employee theft, or unauthorized use. Internal control also help accounting records to be accurate and more reliable by taking out the possibility of errors happening and irregularities. When you have an independent internal verification it is provided from internal controls. When this happens this max’s the benefits of the system. There is mechanical, physical, and electric control that when jobs are restricted there is more than one opportunity for accuracy to show for verification. Lots of time in company’s fraud has happened, companies such as WorldCom and Enron. These companies are remembered because they were listed most popular as far as scandals in the business market. More and more are reported each year and because of this there was a Sarbanes-Oxley Act that was passed. This act required all US corporations to manage and make a capable system of internal controls. If they can’t do this then they could be imprisoned or fined. In the year before it came to their attention that the corporate executives and the board of the directors didn’t pay attention to the individual jobs that were able to be manage at the time to make sure they have an efficient and accurate system. At the time there was a bigger possibility of errors to happen because of the businesses allowing multiple people to manage the same task. This act was made so that that companies would make sure they are paying more attention to internal controls. When a company announces that they are in deficiencies with the internal control this means that they would most likely experience a fall in the price of stock. When a company has bad internal controls the investors will not have a lot of confidence as

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