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1- Management integrity: Management integrity, or the ethical nature of personnel of authority, designs the overall tone for the company. Management integrity is communicated with all the employees through the handbooks and procedural manuals of employees. 2- Competent personnel: A company’s capability to recruit and retain proficient employees shows management’s intention to appropriately recording of accounting transactions. Additionally, the retention of workers raises the comparability of financial records from time to time. 3- Segregation of duties: The University of California at Los Angeles observes that a segregation of duties is significant to effectual internal control because it minimizes the risk of errors and wrong proceedings. A successful structure of internal control segregates authoritative, accounting and custodial functions. 4- Record maintenance: Keeping proper records gives the surety that appropriate documentation exists for all the business transactions. The management of records include: storing, protection and ultimately destructing tangible or electronic records. The Environmental Protection Agency highlights that an accurate records organization program minimizes operating costs of the operations, improves effectiveness and reduces the risk of process (James, 2013). SEC: The basic objective of SEC is to make sure that the security market is operating in a fair and orderly way. The professionals of security industry are forming contracts fairly with their clients, and that organizations provide general public all the necessary information about the company position through which investors could be able to make well informed investment decisions (Investor, n.d.). The SEC follows these goals by: mandating that organization reveals material business and financial information; supervising the process of the SROs; following rules with which those concerned in the buying and selling of securities should obey; and filing proceedings or taking other enforcement activities in cases where the law has been desecrated. In spite of the lot of protections given by federal and state securities laws and SRO policy, it is essential for investors to keep in mind that they have the final accountability for their own security (SEC, n.d.). FASB: The Financial Accounting Standards Board is accountable for creating, revising, clarifying, and issuing mutually the broad principles and the specific activities that comprises acceptable financial accounting of private-sector (Tran, 2012). The FASB works through a course of the research projects, discussion memoranda, public hearings, comment letters, and proposal drafts. The FASB's eventual findings on program items are published as Statements of Financial Accounting Standards, which companies are necessary to adhere to (Dietrich, 2013). The Financial Accounting Standards Board (FASB) is a one branch of the Financial Accounting Foundation (FAF), and self-governing, nonprofit business The Financial Accounting Standards Board bears accountability for making generally acceptable accounting principles (GAAP) for the private or confidential sector (FASB, n.d.). Part 3-answer: Company in that was praised for its ethical practices: Nestle company has got a huge number of employees around the globe and it is maintaining a highly ethical behavior in its all the companies around the world. Nestle provides great satisfaction to employees and their satisfaction reflects in the ...Show more


Internal audit of the organization: The regular internal audit of the company and the self assessments of every individual in the organization help to ensure the accurate implementation of the control systems and all the standards of business conduct (Arena, & Azzone, 2009)…
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