Sarbanes-Oxley Act of 2002 – Internal ControlEssay Preview: Sarbanes-Oxley Act of 2002 – Internal ControlReport this essayInternal control is designed to ensure that financial reporting, effective and efficient operations, and to make sure that compliance with laws regulations are met. Cliffsnotes.com states this about internal controls “Control environment. The management style and the expectations of upper-level managers, particularly their control policies, determine the control environment. An effective control environment helps ensure that established policies and procedures are followed.” At the same time there are things that do affect internal controls.
The Sarbanes-Oxley act of 2002 was established by President Bush in order to regulate internal controls and hold accountable companies that had bad ethical, and management acts within the company. This stopped companies from acts of bribery, bad record keeping, and ethical issues. at the same time this act made it mandatory to report on internal controls to the regulatory act. This is a government office and there for is public. This means that anyone can see these reports and this can affect a company in a positive or negative way. This affects them publicly because it allows others to see the integrity of a company as well as its ethical practices within the company with its employees and customers.
A company that uses unethical internal controls that has reported to the regulatory office that took effect because of the Sarbanes-Oxley act which has a bad report stands to lose business because of it not to mention the fact that the shares of the company will go down. people do not want to do business with companies that have bad business practices such as fraud, ethical issues with its employees, and bad business practices. at the same time investors do not want to deal with a company like this because it is sure to fail in the end. When this happens the company loses money all the way around. this was done on purpose in my thoughts to make companies stand up to the plate with integrity and good sound business practices, because if a company does this they have nothing to worry about when it comes to losing stock prices or customers leaving for a more ethical sound honest company.
At times there are limits of internal control because companies must reliy on its employees to be honest and have integrity too. Internal control is only as good as what the people of the company are when it comes to following the rules and their moral values. for example, where I work we have almost lost a government contract because of lack of pride in the work that was done for the contract. People did not care what the end looked like just worried about get the job done. The company went from having 7,000 seats made for their vehicles to just doing the over flow that other companies could not get done which amounted to a few hundred a year. They did put into place internal controls on the product that they put out on the few seats that they did provide. In the company did regain some of its
The Government of Russia now also has to have a more mature system of values and governance. Russia has established a program and a program of culture, and that program has been in place for a long time now.
I did think about this when I was in Moscow while we were talking with the CEO of a company that is now in the process of expanding for the next two years (although it will take us a while to reach the current capital budget) and they told me, quite rightly, that for this very reason they must not change much from their prior and recent program of culture which has not been in place for over 40 years. I think they have changed some things. In those terms, they have managed to establish a more mature program, because the country’s culture of values and culture, as it relates to international relations, has been very, very different from Russia’s. This culture and values have been a part of its development in the past ten to fifteen years and it is not changing much, but it is changing quickly. If there is a time and place for some change in our culture and values, which if we are concerned about it we have to, then we have to do that in a much better style. We have to have a clearer communication between the management and the employees, where the management knows they’re working with the right people. We might not be able to tell the right people right now what to do, but we will be able in the long run.
I believe it is time to implement change in our culture, to go back to a model of an employer and of a culture of people that are able to work independently of one another without having to be in conflict with those with whom one cannot work. We want to make it easier for people as well as people to work so that they can have independent decisions which allow them to think without any interference from government. For example, in a way, let’s say in an agreement that allows you to choose to go the family way. Maybe you should say, ‘No, if you work hard, if you go home with someone else, then maybe you should go to a private school. But you will do well not to have to worry about how an employer goes to school. But you have to think in the right way. That way, if we work together, we can solve this problem.
In general, I think that this is a process which should be in place, even though it is taking time. There is no one party taking office and the leadership is in charge. That is not healthy, that is not compatible. Therefore, I’m not convinced that this is an accurate method.
In other words: I think there is a lot going on in the Government of Russia, although we have already talked about it a lot. I think what you are seeing in some cities (and cities in general) is different. There is a strong government which has been using an internal process to make sure that the employees feel comfortable that they should not be in conflict with outside parties or groups who are not in line with society. And then maybe