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Chapter 7 3 4
3.4 Control activities
The control activities include all policies and procedures designed to ensure that
management directives are carried out throughout the organisation.
Examples of specific control activities include those relating to:
Authorisation
Performance review
Information processing
Physical controls
Segregation of duties.
Control activities, also known as control procedures, are designed to address a
control objective.
A control objective is the reason for a control being performed i.e. to ensure
something good happens or to ensure something bad doesn’t happen.
Example 1
Control objectives and activities
A typical risk that a business faces is the risk that employees may try and
claim for expenses that are not business related which would increase costs
for the company and reduce profit and cash.
A control objective would be to ensure employees only claim for valid business
expenditure.
A control activity/procedure to address this objective would be for employees
to have to submit receipts or invoices to support the expense claim. Another
control would be for expense claims to be authorised by a responsible official
before reimbursement.
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