ACCA SBL Syllabus F. Organisational Control And Audit - Need For Adequate Information - Notes ^{7 / 7}

In order for risks to be controlled, it is imperative that there be a sound communication process that captures information and then provides information to all who have need of it.

Since controlling risk is the responsibility of all managers and department heads, information about identified risks and the means of controlling those risks needs to be communicated to all who are responsible for mitigating those risks.

Information about the policies and procedures to be followed by employees should flow down through the organisation.

It is also important that the communication system allows for information to flow in all directions throughout the organisation to lessen the chance of misunderstandings. Information about daily activities may flow across the organisation from employees who develop the information to those who need the information.

Problems may be identified at the lower levels of the organisation (by rank-and-file employees); if the information is not allowed to flow back up to those who are responsible for making corrections, managers will not receive needed information on time.