Concept of Internal Control

The concept of Internal Control is the policies, procedures and practices that a company (management) puts in place to make sure that company assets are protected and that the company’s accounting records are true and accurate. The material in the chapter that discusses the Sarbanes-Oxley Act emphasizes how important Internal Controls are and the penalties that can be imposed on a company for not following good internal control practices. Please answer the following questions regarding Internal Controls. Don’t forget your citations to support your posts.

1.Of all of the internal control procedures and practices suggested in the chapter, which 3 do you think are the most important. Explain the reason why you chose each of them and why you think they are the most important.
2.What is the purpose of a bank reconciliation? How is a bank statement related to internal controls?
3.Review the concepts of the Fraud Triangle at https://www.acfe.com/fraud-triangle.aspx. How does this theory relate to internal controls?

Choose two of the following questions to answer:

1. Many critics of government programs to help low-income individuals argue that these programs create a poverty trap. Explain how programs such as TANF, EITC, SNAP, and Medicaid will affect low-income individuals and whether or not you think these programs will benefit families and children.

2. Explain how you would create a government program that would give an incentive for labor to increase hours and keep labor from falling into the poverty trap.

3. The demand for skilled workers in the United States has been increasing. To increase the supply of skilled workers, many argue that immigration reform to allow more skilled labor into the United States is needed. Explain whether you agree or disagree.

4. What do you think is more important to focus on when considering inequality: income inequality or wealth inequality? Explain why.