Effect of Sarbanes-Oxley Act: Internal Controls
Not what you're looking for?
What are Internal Controls and their two primary goals? How did the Sarbanes-Oxley Act of 2002 affect internal controls?
Also why would a company that announces deficiencies in its internal controls experience a fall in the price of their stock?
Purchase this Solution
Solution Summary
The solution discusses the effect of Sabanes-Oxley Act specifically the internal controls and primary goals.
Solution Preview
Internal Controls
I - What are Internal Controls and Their two primary Goals and how did the Sarbanes-Oxley Act of 2002 affect Internal Controls.
There are two types of internal controls, i.e. Preventative, and detective controls, the purpose of preventative Controls is to discourage errors or irregularities from occurring, while the purpose of detective Controls is to find errors or irregularities after they have occurred. (Example: reconciling monthly account statements).
The primary goals of internal control systems are:
? To help enhance the likelihood that the objectives of the organization will be achieved
? Promotion of "orderly, economical, ...
Purchase this Solution
Free BrainMass Quizzes
Basic Social Media Concepts
The quiz will test your knowledge on basic social media concepts.
Employee Orientation
Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.
Paradigms and Frameworks of Management Research
This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.
Motivation
This tests some key elements of major motivation theories.