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Controls within an entity are meant to promote efficiency and effectiveness. Section 404 requires public companies to include a report about the effectiveness of controls in their annual form 10-k. Internal controls are designed to achieve all three objectives.
Management is responsible for making sure that the financial statements are in accordance with GAAP requirements. Controls with in an organization promote the efficiency and effectiveness of company operations. Controls provide assurance to ensure that a company is producing accurate financial and non-financial information for correct decision making...
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