ACCA Strategic Business Leader (SBL) Practice Exam

What aspect is NOT part of the framework for internal control?

1. Control environment

2. Risk assessment process

3. Customer feedback mechanism

4. Monitoring the system of internal control

The correct answer is: Customer feedback mechanism

The correct answer is the customer feedback mechanism, as it is not part of the framework for internal control. The internal control framework primarily focuses on ensuring that an organization operates effectively and efficiently, complies with applicable laws and regulations, and produces reliable financial reporting. The control environment sets the tone for the organization and involves the integrity and ethical values of the entities, which establishes a foundation for effective internal controls. The risk assessment process identifies and analyzes relevant risks that could hinder the achievement of objectives, allowing for the implementation of appropriate controls. Monitoring the system of internal control is vital for ongoing evaluation and improvement, ensuring that controls function as intended over time. While customer feedback is important for an organization's overall strategy and may influence operational adjustments or improvements, it does not fit within the key components that underpin an effective internal control framework. By distinguishing between these elements, it becomes clear how each supports organizational objectives, while also illustrating the peripheral role that customer feedback plays in the context of internal controls.