ACCA Strategic Business Leader (SBL) Practice Exam

Which of the following is NOT part of the process to monitor the internal control system?

1. Regular audits and assessments

2. Performance reviews of the management team

3. Feedback from team members

4. Analysis of financial performance

The correct answer is: Feedback from team members

The monitoring of an internal control system is a crucial aspect of ensuring that an organization functions effectively and adheres to regulatory and operational standards. Regular audits and assessments are integral to this process, as they provide a systematic review of the effectiveness of controls in place. Performance reviews of the management team also contribute by evaluating whether leadership is fulfilling its responsibilities related to internal controls and compliance. Analysis of financial performance is essential as well, as it helps identify any discrepancies or areas that may require tighter controls or adjustments. Feedback from team members, while valuable for continuous improvement in many areas, does not directly fall under the formalized process of monitoring internal controls. The focus in internal controls is on structured evaluations rather than informal feedback mechanisms, which are often geared more toward operational improvement rather than compliance or control effectiveness. This distinction clarifies why team feedback, in this context, is regarded as the outlier in the process of monitoring internal control systems.