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Clear strategies
for dealing with the significant risks that have been identified

The 
company's
 culture
, 
code of conduct,
human resource policies
and 
performance reward 
systems
supporting the business objectives and risk management and internal control systems
 

Senior management demonstrating through its actions and policies commitment to 
competence, 
integrity 
and 
fostering a climate of trust 
within the company 
 

Clear definition 
of 
authority, responsibility 
and
 accountability 
so that decisions are made and 
actions are taken by the appropriate people


Communication 

to employees of what is expected of them and scope of their freedom to act
 

People in the company having the 
knowledge, skills 
and 
tools 
to support the achievements of the 
organisation's objectives and to manage effectively its risks

However, a strong control environment does not, by itself, ensure the effectiveness of the overall internal 

control system although it will have a major influence on it. 
The control environment will have a major impact on the establishment of business objectives, the 
structuring of business activities and dealing with risks. 
 
Controls can be classified in various ways including 
administrative
and 
accounting; prevent, detect
and 
correct; discretionary
and 
non-discretionary; voluntary
and 
mandated; manual
and 
automated.
The mnemonic 
SPAMSOAP
can be used to remember the main types of control. 
2.2 Classification of control procedures
You may find internal controls classified in different ways; these are considered below. Classification of 
controls can be important because different classifications of control are tested in different ways.
BPP Tutor Toolkit Copy

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CHAPTER 9
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CONTROL, SECURITY AND AUDIT