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An effective internal control system is one that provides reasonable protection of assets, the reliability of financial information, and the compliance with laws and regulations (UCOP). An effective internal control helps the organization not only achieve its goals and mission, but also helps the organization promote more effective operations and reduce the possibility of asset loss. Internal controls, however, do not ensure success. The size of the staff, the cost of implementing the system, as well as external events that are beyond the company's control are among the reasons why internal controls do not provide absolute assurance...
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