Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › 5 components of internal control system
- This topic has 2 replies, 2 voices, and was last updated 6 years ago by talhaferoz.
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- June 2, 2018 at 9:15 pm #455609
Sir as you said that 5 components of internal control are Control environment,Risk assessment,Information system,Control procedures and Monitoring. Right?
My question is that if the question says to explain these 5 components and the question is for 5 marks. So
1) For Monitoring of controls if I write that it is a process to assess the effectiveness of internal controls over time and taking necessary remedial action. Management achieves monitoring of controls through ongoing activities, separate evaluations, or a combination of both. Would it be enough to score 1 full mark OR do I need to elaborate more to gain 1 full mark?
2) For entity’s risk assessment process if I write that it includes how management identifies business risks relevant to the preparation of financial statements in accordance with the entity’s applicable financial reporting framework. Would it be enough to score 1 full mark OR do I need to elaborate more to gain 1 full mark?
3)For control activities if I write that control activities are policies and procedures designed to ensure that management directives are carried out. Would it be enough to score 1 full mark OR do I need to elaborate more to gain 1full mark?
And likewise will explain Control environment and Information system..
June 2, 2018 at 10:42 pm #455627That’s fine. You have written enough for one mark. No time for more.
June 2, 2018 at 11:36 pm #455636Thankyou
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