Internal Controls and Accounting Information Systems

Internal Controls and Accounting Information Systems
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Institution
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Abstract
An effective information system (AIS) and internal controls are required to ensure that the financial statements are accurate. The management establishes the internal controls while the auditors assess their effectiveness and inform the management. The adoption of the Sarbanes Oxley Act of 2002 (SOX) and Public Company Accounting Oversight Board (PCAOB) impacted auditors, management and public firms registered with the U.S. Securities and Exchange Commission (SEC). Small businesses also need to comply with the SOX rules and PCAOB standards.
The accounting information system (AIS) processes the financial and non-financial transactions affecting the financial transactions. Accurate information is re...