Internal Accounting Systems and Controls
Evaluating how an accounting function works, where fraud and error get in, and how to recommend practical improvements.
Subsections
Read the lessons, then take the check. The check pulls in anything you struggled with earlier in the unit.
The accounting function and organisational context
Connect reliable accounting to organisational objectives, stakeholders and professional responsibilities.
- Why the accounting function exists5 min
- Following transactions across departments5 min
- Professional judgement in context5 min
Internal control systems and fraud risk
Explain control objectives, the fraud triangle and practical safeguards in purchases and payroll.
- What a control is meant to achieve5 min
- Fraud risk and the fraud triangle5 min
- Controls over purchases and payroll5 min
Evaluating accounting systems, IT and data
Gather evidence, assess system weaknesses and evaluate cyber, data and continuity risks.
- From observations to supported findings5 min
- IT systems, cyber risk and continuity5 min
- Data quality, confidentiality and useful analysis5 min
Recommendations, costs, change and reporting
Build justified recommendations, plan implementation and report clearly to management.
- Making the financial case5 min
- Implementing change without losing control5 min
- Writing reports management can act on5 min
Controls investigation casebook
Evaluate the evidence from a growing accounting function and build a practical, costed improvement report.
- Reviewing purchase to payment5 min
- Payroll access, data and resilience5 min
- A costed management report5 min
Mixed unit review
Fifteen questions drawn from the whole unit, weighted towards the topics you have got wrong before. Nothing is flagged for revision right now.
Review purchases and payroll at Calder Components Ltd
You are assisting the finance director with a synoptic-style review after rapid growth. Annual purchases are £2.4 million. One purchase clerk controls supplier records and payment release, while one payroll officer enters changes and submits the bank file. No fraud has been established. Review the evidence, identify proportionate controls and support a costed recommendation.
Timed mock exam
Open timed mockHow this unit is assessed
Computer based assessment, six tasks with a pre release case study, 100 marks, computer & human marked.
| Task | Focus | Marks |
|---|---|---|
| 1. The accounting function | Roles, structure and regulation | 15 |
| 2. Internal control | Control types and fraud | 20 |
| 3. Systems evaluation | Weaknesses and their effects | 20 |
| 4. IT and data | Cyber risk and data protection | 15 |
| 5. Recommendations | Cost benefit analysis | 15 |
| 6. Written report | Change and implementation | 15 |