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 EXAM FOCUS POINT
There is an article on the ACCA website entitled “Internal controls” that is relevant to material in this 
chapter. 
BPP Tutor Toolkit Copy

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CHAPTER 9
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CONTROL, SECURITY AND AUDIT 
 
237 

1
Internal control systems 
Internal controls
should help organisations counter risks, maintain the quality of reporting and comply 
with laws and regulations. They provide reasonable assurance that the organisations will fulfil their 
objectives.
1.1 Direction of control systems
In order for internal controls to function properly, they have to be well directed. Managers and staff will 
be more able (and willing) to implement controls successfully if it can be demonstrated to them what 
the objectives of the control systems are, while objectives provide a yardstick for the board when they 
come to monitor and assess how controls have been operating. 
1.2 Purposes of internal control systems 
An internal control system should: 
(a) Facilitate 
the 
business’ 
effective 
and 
efficient operation 
by enabling it to respond appropriately to 
significant 
business
, 
operational, financial, compliance 
and other risks to achieving its 
objectives, including the 
safeguarding of assets 
from inappropriate use or from loss and fraud 
and ensuring that 
liabilities 
are 
identified 
and 
managed
(b) 
Help ensure the 
quality 
of 
internal 
and 
external reporting
, requiring the 
maintenance
of