ACCA Strategic Business Leader (SBL) Practice Exam

What does the UK Turnbull report focus on?

1. Employee performance reviews

2. Annual financial statements

3. Review of internal controls

4. Market growth analysis

The correct answer is: Review of internal controls

The Turnbull report, officially known as the "Internal Control: Guidance for Directors on the Combined Code," primarily focuses on the review of internal controls that organizations have in place. It emphasizes the importance of a robust internal control system within the overall governance framework of a company. The report provides guidance on how directors can ensure that they are effectively managing risks and that the internal controls are functioning properly. This is critical for safeguarding the assets of the company, ensuring the reliability of financial reporting, and maintaining regulatory compliance. The other options do not align with the Turnbull report's core focus. For instance, while employee performance reviews may be part of an organization’s strategic initiatives, they are not the central theme addressed by the report. Annual financial statements, although they are important for external reporting, are not the primary subject of the Turnbull framework, which is more concerned with the processes that ensure the integrity of those financial statements through effective internal controls. Lastly, market growth analysis relates to strategic planning and market positioning, which is not covered in the Turnbull report’s guidance on internal controls.