Business Strategy: Internal Control over Financial Reporting and Audit Reporting Quality
When evaluating business strategies there are several seminal theories, principles, and concepts. An example of synopsis is a business consisting of a summary on how a business’s plan to achieve their goals and make the necessary improvements. For this to be done, it can be extremely beneficial to use past data. The resources utilized for this week’s discussion board are “Business Strategies: Internal Control over Financial Reporting and Audit Reporting Quality and Information Technology and Business-Level Strategy: Toward an Integrated Theoretical Perspective.”
Located in the ”Business Strategies” is prior internal controls. These controls are based around reporting. The Sarbanes-Oxley Act of 2002 requires that all management personnel of U.S. companies review and report the effectiveness of the company’s internal controls. This mandate can help businesses with creating new principles or reviewing their old ones. The theory within this article is that the company’s strong point of internal control is a part of its business strategy. The advantages of internal control of a company helps to reduce fraud. Also, it increases financial reliability and helps to protect assets. The biggest disadvantage of internal control is that it causes company’s auditors to become dependent on the internal control system.
The second article, Information Technology and Business-Level Strategy focuses on more of the principles and concepts. Technology can determine the profit value of a company. IT falls under business principles because it helps to build the company’s guidelines. Which ultimately affects the decision making. Since technology is always changing it allows for IT to continue applying current capabilities while exploring new ones.
Bentley-Goode, Kathleen A.; Newton, Nathan J.; & Thompson, Anne M.(2017). Business Strategy: Internal Control over Financial Reporting and Audit Reporting Quality. Vol. 36 Issue 4, p49-69.