Internal controls

In this lesson

1. 0:00 Internal Controls and Risk Mitigation Overview
2. 0:45 Individual Controls and System Framework
3. 2:14 Components of Sound Internal Control Systems
4. 4:05 Value and Consequences of Internal Controls
5. 6:05 Roles and Responsibilities in Risk Management
6. 7:42 Key Features of Effective Control Systems
7. 8:21 Common Control Types: SPAM SOAP Framework
8. 9:36 Fraud Prevention and Error Prevention Controls
9. 11:04 Waste Reduction and Environmental Impact Controls
10. 12:18 ABC Electronics Case Study Application

About this lesson

You'll also discover the consequences of poor controls and the roles different people play in managing risk across an organisation. By the end, you'll be able to recommend specific controls tailored to business situations, including fraud prevention, error reduction, and environmental impact measures. Internal controls are the processes, procedures and policies an organisation implements to achieve its objectives, prevent fraud and maintain accurate financial reporting. They provide reasonable assurance—not certainty—that risks are managed effectively. A sound internal control system combines a controlled environment, risk assessment, control activities, monitoring and continuous improvement. Understanding this framework is crucial for the SBL paper, where you'll need to evaluate and recommend controls in case study scenarios. The lesson breaks down the key types of controls you'll encounter: segregation of duties, physical access controls, authorisation and approval processes, supervision and monitoring, and strong organisational culture. You'll also explore specialist controls for fraud prevention (like whistleblower hotlines and mandatory vacation policies), error prevention (through standardised procedures and quality checks), and environmental responsibility (such as lifecycle assessments and renewable energy integration). The roles of executive management, risk committees, internal audit and business unit managers in maintaining effective control systems are also covered, ensuring you understand who's accountable for what.

Duration: 14m