Internal controls and compliance

In this lesson

1. 0:00 Internal controls and compliance overview
2. 1:26 Internal control definition and objectives
3. 2:31 Why internal controls matter for business
4. 4:02 Internal control versus internal check
5. 5:13 Internal control system elements explained
6. 6:33 Control activities: SPAM and SOAP framework
7. 8:01 Types of control: preventative, detective, corrective
8. 12:23 Effectiveness of internal control systems
9. 15:00 General IT controls and data security
10. 17:20 Application controls and user access

About this lesson

James Wright walks you through eight key topics: what internal controls are and why they matter, how they differ from internal checks, the five elements of an effective control system, and the specific control activities you need to apply in real business scenarios. You'll explore the SPAM and SOAP mnemonics to master control activities like segregation of duties, physical controls, authorisation, and supervision. The lesson covers preventative, detective, and corrective controls across the risk timeline, and examines how to assess whether an internal control system is genuinely effective. You'll also discover the practical differences between general IT controls and application controls, with concrete examples of user authorisation, data completeness, and data validity checks. By the end, you'll be confident identifying control weaknesses, spotting inherent limitations like human error, and applying control principles to exam scenarios. The lesson includes worked multiple-choice questions that show you exactly how examiners test this knowledge, so you can approach similar questions with clarity and precision.

Duration: 21m