Types of internal control and control activities

In this lesson

1. 0:00 Risk management and internal control overview
2. 0:46 Types of internal control systems
3. 1:54 Input, process and output controls
4. 2:14 Outsourcing as a control mechanism
5. 3:45 Treasury function and practical examples
6. 4:40 APIPS framework for control recommendations

About this lesson

This video breaks down the distinction between financial and non-financial controls, explores the prevent-detect-correct framework, and introduces the PIPS model—a practical tool for recommending controls in exam scenarios. Understanding these control categories and how they work together is essential for Risk Management questions across CIMA and ACCA papers, particularly when you're asked to evaluate control weaknesses or recommend improvements to control systems. The video covers three key ways to categorise controls: by type (financial versus non-financial, quantitative versus qualitative), by objective (preventive, detective, and corrective), and by stage of processing (input, process, and output controls). You'll also explore outsourcing as a control strategy and see how the Treasury function operates as a practical example of risk management in action. The PIPS framework—Authorisation, Performance review, Information processing, Physical controls, and Segregation of duties—gives you a structured approach to generating control recommendations when exam questions ask you to suggest improvements. This knowledge directly supports your ability to tackle case study scenarios and objective test questions that require you to evaluate or design effective control environments.

Duration: 6m