Internal control refers to the specific procedures used within a company to protect its assets against employee theft, theft and unauthorized use and to improve the accuracy and reliability of its accounting records by making fewer errors (Weygandt, Kimmel and Kieso, 2008). There are six principles that are used throughout the industry as standards for such control. These are:1. Establishment of liability2. Segregation of duties3. Documentation procedures4. Physical, mechanical and electronic controls5. Independent internal audit6. Other controlsThe first of these controls, the establishment of responsibilities, is the assignment of responsibilities to certain employees. It has been found that “control is most effective when only one person is responsible for a given task” (Weygandt, Kimmel, & Kieso, 2008), which includes authorizing and approving transactions. Segregation of duties is the need to separate record keeping from transactions. an asset from the location of that asset. This means that the person who physically owns the money is responsible to the person who gave them the money. The person who signed over the money has documented the exact amount given to the person signing, which indicates that they agree to the documented amount. Procedures for documenting any transaction in a business must be in place. Every time a sale is made, there must be a receipt; Every time something is purchased for the business, there should be an invoice. This type of documentation helps eradicate theft. Physical controls that facilitate internal controls are items such as safes, computer passwords, locked storage, and warehouses with inventory that only those assigned with the code can access.... middle of paper ...is offset by the cost to be paid. In this case, assets can become liabilities. The need for internal controls for a company has been illustrated by the recent downfall of companies such as Enron. It was the internal employees, the presidents and their assistants, who were supposed to safeguard the company's assets, who took them. Since then, SOX has held corporate executives and boards responsible for their actions and their employees. It is in the best interest of businesses that want to continue to be successful to continue to implement rigorous internal controls by establishing responsibilities, segregating duties, documenting procedures, using independent and internal physical, mechanical and electronic audits. , as well as other controls to protect their assets from those who wish to steal, steal and use unauthorized assets within the company.