the.com/internal controls
the corporate immune system that flags fraud before the auditor does.
means the policies, checks, and approvals a company builds to make sure its money, data, and decisions aren't quietly sabotaged by error or theft.
from formalized in the u.s. after enron and worldcom collapsed, when the sarbanes-oxley act of 2002 forced public companies to prove their financial plumbing wasn't rigged.
sox sectionsection 404 makes ceos personally certify controls work
three linesmanagement, risk teams, and auditors form defense layers
segregation of dutiesno one person approves and pays the same invoice
costlarge firms spend millions yearly just to test them
for instance
sarbanes-oxley act — 2002 law requiring public companies to certify internal controls annually
wells fargo scandal — 2016 fake-accounts fraud traced to broken sales-control oversight
coso framework — 1992 standard most companies use to design their control systems