Enron Internal Control

721 Words3 Pages
Introduction
After the fall of Enron and WorldCom, investors’ confidence and trust in the market was at an all time low. In response, Congress passed the Sarbanes-Oxley Act to help regulate and provide guidance over internal controls and financial reporting. With the implementation of SOX was section 404, which requires external auditors to assess company’s internal controls and management to sign all financial statements. Internal controls are specific procedures and “measures adopted within an organization to safeguard assets, enhance the reliability of accounting records, increase efficiency of operations, and ensure compliance with laws and regulations” (Weygandt, Kimmel, & Kieso, 2013 p.377). The system of internal controls consists of five components; A control environment, risk assessment, control activities, information and communication, and
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What are some preventive measures an individual can take to help prevent fraud?
5. What are some preventive measures managers can take to help prevent fraud?
6. Why should we care?
Methods
My primary focus will be the sources I have found. I will continue to do research and ask questions at work regarding the issue. The sources I have found will include professional journal articles, government reports, books, and websites from professionals on the topic. I need to not only understand the management perspective of the issue, but the everyday employee.
My Qualifications
I am qualified to do this research for many reasons. First, I have taken many accounting classes and I am only a year away from my Bachelor’s. Second, I currently work with the Washington State Auditors Office. Day to day I am auditing government entities accountability, financials, and internal controls. I know and understand the importance of internal controls and the faith the public put in us to ensure their dollars are being spent properly. Lastly, I have done an extensive amount of research, so I am knowledgably on this issue.
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