Interaction between Internal Control and Corporate Governance Regarding the Economic Point of View - Research Paper Example

The paper "Interaction between Internal Control and Corporate Governance Regarding the Economic Point of View" is an excellent example of a research paper on finance and accounting. For more than a decade, internal control and corporate governance have gained prominence as topical and pertinent business issues due to a sequence of major business failures and fraud in both the United Kingdom and the United States of America (Ashbaugh-Skaife et al., 2012). Still, it is imperative to note that internal controls have existed since the era of ancient civilizations. For instance, in Ancient Egyptian society, a dual administration existed and had a bureaucratic authority to supervise the collection of taxes.

Multiple financial scandals have shaken investors and financial markets globally. They contribute to the recognition of the fundamental role of the ICS (internal control system) in the governance plan of organizations such as J Sainsbury Plc. The concept of interaction between ICS and corporate governance covers the entire structure and process used in the management of business affairs to enhance corporate accounting and prosperity to realize the long-term value and interests of stakeholders. The topic of this research was chosen after lengthy deliberation and careful consideration. Since the 2008 financial crisis, the UK economy has slumped significantly. Even though there are signs of recovery, the pace is gradual, rendering the economy susceptible to market shocks. The impact of the economic crisis has been felt in all sectors. In fact, the operations of most businesses shrunk due to the closure of some of the branches as the consumers spend lesser (Beasley et al., 2013). However, J Sainsbury is one of the corporations that have exhibited resilience amidst the economic downturn. The survival of the firm and its positive performance are contributed by several factors, including excellent corporate governance and internal controls. In light of this, the research investigates these aspects to explore the tactics employed by the management and the staff to boost organizational performance.