
The following is an example of an internal control which operates at Big Staffie plc.
In each example, select which control activity is illustrated:
– The finance director compares monthly expenditure on consumables to the budgeted expenditure.
Select ONE answer:
- Information processing
- Authorisation
- Performance review
- Segregation of duties
Show your workings to arrive at your answer, and explain and justify your reasons:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 3
- Not correct
- Not correct
- Correct => Performance review includes reviews and analyses of actual performance against budgets, forecasts and prior period performance.
- Not correct

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