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Hi,
With payroll direct control Mar/Jun 24 paper it seems to have two direct controls mingled into one when I myself have separated the direct controls into two different direct controls.
It states: Francisco Co employs distribution depot staff who are paid monthly based on the number of hours worked. Each employee has a staff identity card which they use to sign in and out of the depot at the beginning and end of each shift to record their hours worked, and this process is supervised by security staff as well as CCTV cameras.
But all that is for some reason only one direct control when I have separated the following into two different controls:
“Each employee has a staff identity card which they use to sign in and out of the depot at the beginning and end of each shift”
and
“this process is supervised by security staff ”
I am sure I have seen this done on a separate paper before…
I don’t think you need to get overly bogged down in whether something is a whole mark or a half mark – but perhaps you can appreciate that “supervision of something” isn’t going to be worth a whole mark. There is another very similar Q Raspberry from M/J18 where the answer point “Production employees are issued with clock cards and are required to swipe their cards at the beginning and end of their shift, this process is supervised by security staff 24 hours a day.” is 1 mark – so this is consistent.
If you want to get technical about this (and most students don’t – nor is it necessary to do well in the exam) – this is useful knowledge in s.2.3 of ACCA’s Study Hub Chapter 12:
Direct control – controls that are precise enough to address risks of material misstatement at the assertion level.
Indirect control – controls that support direct controls.Control activities (i.e. Authorisation and approvals, Reconciliations, Verifications, Physical or logical controls and Segregation of duties) are mostly direct controls.
Controls in the control environment, risk assessment process and monitoring process are primarily indirect controls (although they may also be direct).
It could be argued that the supervision is a monitoring control that supports the direct control – i.e. is indirect.
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