Internal controls should be an integral part of any organization's financial and business policies and procedures. Internal controls include all actions taken by the organization to: (1) protect its resources against waste, fraud, and inefficiency; (2) ensure the accuracy and reliability of accounting and operational data; (3) ensure compliance with organizational policies; and (4) assess the level of performance in all organizational units of the organization. Internal controls are simply good business practices (Strauss, 2003). And since internal controls can have many other meanings in the world of accounting, the more we understand what they are, the better we can analyze internal controls. As it relates to a business, internal controls constitute the internal (inner) workings of a business. However, in accounting, these controls allow an organization's financial departments to use a set of rules to track and process financial information. By following these guidelines, any individual can process information correctly and not have to worry about the consequences for any worker who provided the correct information to the human resources department. We'll discuss two key purposes of internal controls and the Sarbanes Oxley Act of 2002. And we'll examine what can happen to a company's stock if internal controls aren't followed, including due to inaccurate financial statements. The objectives of internal controls are to protect company assets from theft by employees and to protect assets from illegal use. Both of these goals can help “improve the accuracy and reliability of accounting records.” This is done by reducing the risk of errors (unintentional errors...... middle of paper...... the same will be true for the employees who work for that company. The public image of distrust will alienate customers or investors of that company, which will result in this is actions - if a public company abandons and risks going out of business and causing workers their jobs. In conclusion, as we look at the internal controls of that company. companies, it is a way to encourage them to do the right thing, both morally and ethically held accountable for their actions and this thanks to the “Sarbanes Oxley Act. Everyone in this company, from the top. down, must follow proper procedures. This way, investors can invest knowing that the internal controls are there for their protection, as long as humans are involved in the internal controls. 'one bypasses them for their own personal benefit, but at least everyone knows that when these people are arrested, they will pay a high penalty.