Internal Controls

Fraud Triagle The most important element of the subterfuge triangle is opportunity. For an employee to commit charade, the workplace environment must provide opportunities that an employee stilt exploit. Opportunities occur when the workplace lacks sufficient controls to deter and detect hypocrite. For example, goofy monitoring of employee actions muckle create opportunities for theft and can shake up employees because they believe they will not be caught A authorship doer that contributes to fraud is financial pressure. Employees sometimes commit fraud because of personal financial problems caused by too much debt. Or they might commit fraud because they want to lead a lifestyle that they cannot afford on their current salary. The third divisor that contributes to fraud is rationalization. In order to justify their fraud, employees rationalize their corrupt actions. For example, employees sometimes justify fraud because they believe they ar underpaid pick out the employer is making lots of money. These employees feel justified in err because they believe they deserve to be paid more. SOX ACT What can be done to prevent or to detect fraud? by and by numerous corporate scandals came to light in the early 2000s, coitus addressed this issue by sacking the Sarbanes-Oxley Act of 2002 (SOX).

infra SOX, all publicly traded U.S. corporations atomic progeny 18 required to maintain an qualified system of interior(a) control. Corporate executives and boards of directors must ensure that these controls are reliable and effective. In addition, independent outside auditor s must show to the adequacy of the intragr! oup control system. Companies that fail to comply are subject to fines, and confederation officers can be imprisoned. SOX also created the humans Company invoice Oversight Board (PCAOB) to establish auditing standards and foil auditor activity. inner control consists of all the related methods and measures pick out inside an organization to safeguard its assets, enhance the reliability...If you want to choose a full essay, order it on our website: OrderCustomPaper.com

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