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Question - When you have something that is valuable to you, action is taken to protect it, well, companies are no different. Safe guarding company assets are a top priority to prevent theft and losses within the company, and at the top of the list is cash. However, companies are not only responsible for protecting their assets, they must also act to protect the trust investors and other stakeholders have placed in management:
1. What level of internal controls is consider to be adequate in a company?
2. What are effective controls for cash and why are these controls considered to be effective?
3. Discuss the effects the Sarbanes-Oxley Act of 2002 (SOX) had on internal controls.
4. Give an example of an internal control and what it is meant to protect
5. How to complete comprehensive bank reconciliation with theft and internal control deficiencies. (175 words only for this question)
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