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Justification for an Internal Control

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Justification for an Internal Control
Daniel R Rojas
ACC/544
November 11, 2013
Fred Johnston

Justification for an Internal Control
In a business, any control system is great for a company. Insurance and Portfolio Approaches are good to have, however they’re not a guarantee as they fall under the category of being risky. The best way to lower the risk in a company is to invest more into internal controls. Having security on the perspective of being on the “inside” is less of risk oppose to just having external security. Internal controls, along with insurance and portfolio approaches will be discussed below. Take into consideration the pros and cons.
There are a host of benefits and reasons why to comply with business insurance requirements imposed by both financial and government agencies. Financial service providers, especially banks and investors, may tie-up access to capital and financing when insurance requirements are not met. So it is of great benefit and importance to get the types and levels of coverage that meet their specifications. Government agencies (federal, state, and local) can impose fines, restrictions, and cancel required licenses that could virtually shut operations down.
Second only to its employees, a business's structure, warehouse, products and property are important to insure. Business owners should make it a point to check out insurance companies that specialize in commercial property and casualty insurance. These companies know how to assess the importance and value of machinery, equipment, and inventory. They will also assess needs for accident liability coverage to comply with federal OSHA (Occupational Safety and Health Administration) laws.
Even if your company is diligent about complying with federal regulations regarding discrimination, sexual harassment and unfair hiring, lawsuits are filed every day. Employment Practices

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