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Internal Control over Financial Reporting – Guidance for Smaller Public Companies

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An organization needs internal controls to provide greater assurance that they will achieve their operating, financial reporting, and compliance objectives; in other words to help the organization succeed in its mission. Internal control helps ensure that the directions, policies, procedures, and practices designed and approved by management and the board are put in place and are functioning as desired. The more elaborate the organization, the more the need for internal control to counteract any loss of effectiveness sustained when adding more people and processes to transact business

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