Carrtegra Blog The Importance of Internal Controls in Accounting

With the corruption of Enron and WorldCom, internal controls became more and more important. An effective internal control system is a requirement of the Sarbanes- Oxley Act of 2002 which regulates reporting and testing of internal controls over financial reporting for public companies. Internal controls play a critical role not only in public companies but also in private companies, because internal controls establish safeguards to an organization's assets and minimize the opportunities of committing fraud and allowing errors to go undetected in an organization's daily operations.In this article, we will discuss the importance of internal controls in accounting to help you to establish an effective internal control system in an organization.