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Fighting Weak Internal Controls
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Ever since Sarbanes-Oxley was passed more than six years ago, the importance of maintaining effective internal controls has only increased. As a result, the importance of accounts payable has increased with it.
The AP department has a unique place on the ground floor of an organization's financial process. This issue features information to help your department guarantee that your organization's internal controls are tight and effective.
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| Patrick Harbin – Editor
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Building Internal Controls |
When developing or reviewing your organization's internal controls, it's important to remember the five interrelated components of internal controls as defined by the Committee of Sponsoring Organizations of the Treadway Commission. These are:
- Control Environment – Sets the tone for the company. Characteristics include integrity, ethics, values, and competence of personnel.
- Risk Assessment – Management should evaluate risks to the controls both inside and outside the organization.
- Control Activities – Policies and procedures enacted by the organization to ensure action are executed and goals achieved.
- Information and Communication – Communication should move up and down the chain of command.
- Monitoring – Periodically reevaluate and assess the internal control system.
Be sure to check out the Internal Controls Policy and Procedure Manual Toolkit for help developing or improving your own internal controls. The toolkit includes an internal controls checklist and SOX Section 404 management report. Available in the AP Store under "Tools, Forms, and Templates."
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New York Supreme Court Upholds 'Amazon Law' |
The New York Supreme Court's recent ruling concerning online retailers could set a new precedent for how states determine sales tax nexus. Read the story on TAPC.
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Just for Fun |
In accounts payable, going electronic typically means abandoning the paper. However, scientists in Israel have invented "electronic paper," which is capable of displaying full color digital images.
Popular Mechanics has compiled a list of the 16 Wild Inventions and Technologies. According to the list, one day you could sign your signature in magnetic ink!
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