Characteristics of Good ICS (MOSSPAPA)
1. M – Management performs independent checks on performance
Management is responsible for designing and maintaining the ICS. Regular reviews must be carried out to ensure controls operate effectively, as staff may forget, ignore, or bypass procedures without monitoring.
2. O – Organisational structure
A clear organisational structure facilitates proper delegation of duties, coordination of activities, and control over employees. Responsibilities, authority, and reporting lines must be clearly defined (e.g. organisation chart).
3. S – Segregation of duties
Key functions must be separated:
- Authorisation
- Recording of transactions
- Custody of assets
This prevents any one person from controlling a transaction from start to finish, reducing fraud and error risk.
4. S – Supervision
Work should be supervised on a regular and continuous basis. For example, tasks performed by clerical staff should be reviewed by a supervisor or superior.
5. P – Physical control over assets and records
Physical safeguards are used to prevent unauthorised access to assets and records, such as:
- Cash kept under lock and key
- Important documents stored in fire-proof safes
- Inventory secured in storerooms
6. A – Arithmetic and accounting controls
Transactions must be accurately recorded and processed. This includes:
- Proper chart of accounts
- Systems and procedures manuals
- Bank reconciliations
- Control accounts for sales and purchases
7. P – Personnel hiring and training policy
The organisation should employ competent, qualified, and honest staff. Proper training programmes should be provided for both new and existing employees.
8. A – Authorisation and approval
Only valid transactions should be recorded. Transactions must be carried out according to management’s general or specific authorisation (e.g. large cash payments requiring dual approval).
Exam Tip (Easy Recall)
👉 MOSSPAPA
Management checks
Organisation structure
Segregation of duties
Supervision
Physical controls
Accuracy (arithmetic & accounting)
Personnel policy
Authorisation
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