ACCA SBL Complete Practice Exam 2025

Effective internal controls play a crucial role in enhancing the security and reliability of an organization’s processes. One significant impact of these controls is improved asset safeguarding. Internal controls refer to the processes and procedures implemented by an organization to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

By establishing strong internal controls, organizations can protect their physical and digital assets from unauthorized access and misuse, ensuring that resources are properly managed and utilized efficiently. This includes various measures such as regular audits, checks and balances, segregation of duties, and secure access protocols.

While other options suggest negative implications such as higher operational costs or increased employee turnover, effective internal controls typically aim to optimize these aspects by improving efficiency and reducing the risk of loss. Similarly, less regulatory compliance contradicts the purpose of internal controls, which are often designed to ensure adherence to laws and regulations. Therefore, the correct response underscores the benefits of internal controls in ensuring that an organization’s assets are effectively safeguarded against risks.