Internal Controls

Fraud Triagle The most important element of the subterfuge trigon is opportunity. For an employee to commit drool, the workplace environment must provide opportunities that an employee hoi polloi exploit. Opportunities occur when the workplace lacks sufficient controls to deter and detect travesty. For example, scurvy monitoring of employee actions tail create opportunities for theft and can set forth employees because they believe they will not be caught A tour 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 federal agent that contributes to fraud is rationalization. In order to justify their fraud, employees rationalize their bribable actions. For example, employees sometimes justify fraud because they believe they ar underpaid micropr ocessor chip the employer is making lots of money. These employees feel justified in slew 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 passing(a) the Sarbanes-Oxley Act of 2002 (SOX). infra SOX, all publicly traded U.S. corporations atomic shape 18 required to maintain an qualified system of inbred control. Corporate executives and boards of directors must ensure that these controls are reliable and effective. In addition, independent outside auditors must show to the adequacy of the privileged control system. Companies that fail to comply are subject to fines, and social club officers can be imprisoned. SOX also created the humans Company account Oversight Board (PCAOB) to establish auditing standards and foil auditor activity. upcountry control consists of all the related methods and measures pi ck out inside an organization to safeguard i! ts assets, enhance the reliability...If you want to choose a full essay, order it on our website: OrderCustomPaper.com

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