Internal controls. Kind of like a brick wall or fire wall on a computer. Internal controls act as a way to keep a company and its assets safe, as well as ensuring that the company maintains complete and accurate accounting records. Internal controls are responsible for the overall well-being of a company, from its assets to its employees to its sales and reputation. Many things are involved in internal controls such as; Sarbanes-Oxley Act, stock welfare, asset welfare and safety, and accounting accuracy. One of the primary purposes of internal controls is to keep a company's assets safe, whether from employees, thieves, or abuse by outside parties. As you can imagine, maintaining a company's assets would be a very important task that would allow a company to run smoothly and successfully if all went well. Internal controls will work to maintain the security of all a company's assets by ensuring they are not used or accessed unauthorizedly and by closely monitoring all documents and information. Another main task of internal control is to keep accounting records up to date and accurate at all times. In recent months there has been a lot of emphasis on the importance of a company keeping complete and accurate accounting records for many reasons. The well-being of a company may depend on the accuracy of its records; if a problem is identified, a simple solution would be to go back to the logs, but what if the logs are inaccurate or incomplete? It is extremely important that internal controls carefully monitor the accuracy of companies' accounting records in all forms. The Sarbanes-Oxley Act of 2002 or SOX was created by the government's public company sector. .....d to companies losing billions of dollars to those unethical members of a company. As you can see, internal controls in a company can make or break a company. With all the participation and rigorous principles, internal controls can provide a great foundation for a company and catch all errors to ensure smooth operation of the company and avoid any scandals. With a loose internal control system or unethical practices, a company can end up badly, lose customers and investors, lose profits and assets, as well as lose all reputation. There will always be problems within companies, but with careful management of a company's internal control and ethical practices, government involvement, and external audits and views, a company can reduce the risk of losing something valuable to your company and stay out of the market. in the eyes of the public in a negative way.