Importance of internal control to a business

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Explain the importance of internal control to a business and the significance of the Sarbanes-Oxley Act of 2002.

The Sarbanes-Oxley Act of 2002 required publicly traded companies to improve the documentation and functioning of their internal controls.
Management must now render an opinion on the efficiency of the company's internal control system. A strong control environment is a must for companies.
Auditors also must increase their documentation and understanding of the internal controls of their clients.
Significant amounts of resources have been devoted to comply with the provisions of Sarbanes-Oxley.

Reference no: EM13953485

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