ACCA Strategic Business Leader (SBL) Practice Exam

What does the information system in the internal control framework facilitate?

1. Tracking employee productivity

2. Effective communication and data management

3. Financial forecasting

4. Customer relationship management

The correct answer is: Effective communication and data management

The information system within the internal control framework primarily facilitates effective communication and data management. This function is crucial for ensuring that accurate and timely information is available to support decision-making processes. An efficient information system helps organizations gather, process, and distribute relevant data, ensuring that stakeholders have access to necessary information which enhances transparency and accountability. By fostering effective communication, the information system enables different departments and levels of management to share insights, report issues, and collaborate effectively, ultimately helping in the monitoring and assessment of internal controls. Additionally, proper data management ensures that records are maintained accurately and securely, which is vital for compliance with regulations and safeguarding the organization's assets. While aspects such as employee productivity, financial forecasting, and customer relationship management may be supported by components of information systems, they are not the primary purpose of the internal control framework's information system, which is focused on ensuring that organizational processes operate efficiently and effectively with secure and reliable information flow.