Revision Notes

203 | P a g e
Types of organisation

Liability for Distributing Accounting

Ownership Management Net assets Taxation
debts profits regulations

Sole trader
Unlimited Individual pays
takes drawings
Sole trader Sole trader Sole trader Liability for a Capital income tax on None
from the
sole trader profits earned
business

Individuals pay Each partner

Unlimited
income tax on takes drawings
Partnership Partners Partners Liability for a Capital None
their share of from the
partner
profits earned business

Dividends paid
Company pays
to shareholders Companies Act
Board of Limited Liability corporation tax
Company Shareholders Equity from profits and Accounting
Directors for Shareholders on company
earned by the Standards
profits earned
company

Individuals pay Each partner Partnership Act,

Limited Liability income tax on takes drawings Companies Act
LLP Members Members Capital
for Members their share of from the and Accounting
profits earned business Standards

Charity
Not for profit,
legislation and
Board of Limited Liability earns a surplus
Charity Public benefit Funds Tax Exempt statements of
Trustees for Trustees or incurs a
recommended
deficit
practice

Business stakeholders
A stakeholder can be any organisation or person that has an interest in the business.
• Internal stakeholders are people whose interest is through a direct relationship
with the business (anyone within the business) e.g. employees, management or
directors who work for the business, or shareholders and business owners who
invest directly in the business.
• External stakeholders are people that do not have a direct relationship with the
business (anyone outside the business) e.g. banks, customers, suppliers,
competitors, pressure groups, government, local authorities, local communities,
trade unions, media and the general public.
Types of funding used by businesses
• New capital introduced e.g. money invested (or profits retained) by the owners.
• Bank loans, overdrafts and credit cards.
• Hire purchase.
• Finance lease.
• Working capital e.g. chase customer debts or delay payments to suppliers.
• Sale (disposal) of non-current assets e.g. land, property or machinery.

204 | P a g e
Organisational structure
Organisational structure defines how job tasks or activities are formally divided and
coordinated, in order to deliver the organisations goals and objectives.
Elements of organisational structure
• Worker specialisation (division of work).
• Departmentalisation.
• Chain of command.
• Span of control.
• The degree of centralisation (or decentralisation).
• The degree of formalisation.
Hierarchy and span of control
• Hierarchy (scalar chain) e.g. the layers of management and authority.
• Span of control e.g. the number of subordinates supervised by each manager.
Types of organisational structure
• Functional structure e.g. the sub-division of a business into specialised
departments e.g. finance, sales and production.
• Divisional structure e.g. a distinct business set up within a larger group of
companies, to ensure a certain product or market is managed as a separate
business.
• Small (entrepreneurial) structure e.g. limited organisational structure, very few
staff employed and the owner (founder) makes all the key decisions.
• Project-based (matrix) structure e.g. ‘cross functional team work’ to support
team work and collaboration.
The operational, tactical and strategic levels
• Strategic (or corporate) level e.g. concerned with the overall scope and long-
term direction of the organisation, such as holding company (or head office)
within a group, a board of directors in a large company, or the founder (owner) of
a small business.
• Tactical (or managerial) level e.g. concerned with the coordination and control
of operational resources to achieve strategic goals and objectives, such as a
manager of a division in a large group, or a department manager in a large
company.
• Operational (or functional) level e.g. concerned with the routine and regular
nature of running the organisation on a day to day basis, such as department
workers making, selling and delivering products or services.

205 | P a g e
Centralised and decentralised control

• Centralisation e.g. concentrates decision making in the hands the strategic

level, such as senior management.
• Decentralisation e.g. delegates decision making to the operational level, such
as production or sales workers.

The finance function

The finance function provides information, support, advice and guidance to both internal
and external stakeholders.
• Managing funds effectively e.g. cash budgets and planning for borrowing.
• Management accounting e.g. budgets, variances and product costings.
• Financial accounting e.g. statutory financial accounts, tax and payroll returns.
• Corporate social responsibility (CSR) e.g. social and environmental reporting.

Corporate governance
Corporate governance refers to a system that directs and controls a board of directors
in a company e.g. rules, practices or processes for behaviour and decision making. The
spirit of good corporate governance is about balancing the needs and interests of all
stakeholders, not just the company’s shareholders.
Risk and uncertainty
• Risk e.g. chance (or probability) of future outcomes are known and measurable
(with some degree of control).
• Uncertainty e.g. chance (or probability) of future outcomes are unknown,
unpredictable or too complex to be measured (or controlled).
Types of business risk
• Strategic risk e.g. risk of pursuing unsuccessful business plans or objectives.
• Financial risk e.g. risk of high levels of business borrowing (debt).
• Operational risk e.g. operational risk of making and delivering the product.
• Reputational risk e.g. risk of poor brand reputation.
• Legal risk e.g. risk of breaches in laws and regulations.
• Economic risk e.g. risk of economic factors.
• Political risk e.g. risk of government factors.
• Technological risk e.g. risk of new and emerging technologies.

206 | P a g e
The TARA framework
TARA is a risk management framework which can be used to select a suitable response
for each type of risk identified.
• Transfer risk e.g. the risk is transferred (passed on) to a third party.
• Accept risk e.g. the risk is tolerated and no action is taken to control it.
• Reduce risk e.g. the risk is reduced by taking actions to control it.
• Avoid risk e.g. the risk is avoided by terminating activities likely to cause it.

The PESTLE model

PESTLE analysis identifies external opportunities and threats (risks) for a business. It
provides a source of information to help senior management make more effective
strategic (or marketing) decisions.

• P political factors e.g. decisions by a government such as changing tax rates,

war, terrorism, government corruption, changes in government or political trends.
• E economic factors e.g. risk of macroeconomic factors such as inflation, interest
rates, wage rates, supply of labour, exchange rates, recession and trade barriers.
• S social factors e.g. factors driven by population, demographics (age, income,
religion etc) and society needs, wants and values.
• T technological factors e.g. new emerging technologies that may radically
transform a market.
• L legal factors e.g. new product safety standards, new regulations about
hazardous or dangerous materials, new environmental laws, new employment
laws and GDPR.
• E environmental factors e.g. climate and weather.
Task 2 of your exam will include a written question that may require you to identify and
recognise the impact of PESTLE factors affecting a business, and to recommend
appropriate actions to reduce the risk of threats identified.

207 | P a g e
Government control of an economy
• Monetary policy is any action by a government to influence the money supply or
cost of borrowing (credit) within an economy.
• Fiscal policy is any action by a government to change taxation and/or
government spending directly within an economy.
Both policies influence the amount of national expenditure (demand) for goods and
services within an economy, and in turn affect the rate of unemployment and inflation.

Increase demand Decrease demand

in the economy in the economy

Monetary policy Decrease interest rates Increase interest rates

Decrease taxation Increase taxation

Fiscal policy
Increase government spending Decrease government spending

Types of taxation
• Direct taxes are administered and paid ‘directly’ by the individual (or business)
expected to pay it e.g. income tax, corporation tax and national insurance.
• Indirect taxes are ‘indirectly’ collected from the individual (or business) expected
to pay it e.g. VAT is collected indirectly by a shop (a ‘third party’) on sales made
to its customers and paid over to HMRC, on behalf of its customers.
Functions of a tax system
• Taxation raises money to fund government spending and public services.
• Taxation can discourage consumption of undesirable goods and services.
• Taxation can help redistribute income and wealth within an economy.
• Taxation can be used to ‘fine tune’ an economy.
How exchange rates influence business costs
• If an exchange rate weakens, the price of overseas imports will rise.
• If an exchange rate strengthens, the price of overseas imports will fall.
International trade barriers
• Import tariffs (custom duty) e.g. the price of overseas goods will increase.
• Import quotas e.g. the volume of goods imported is restricted.
• Embargo e.g. zero quota on importing overseas goods.

208 | P a g e
The microeconomic environment
A market is any place (physical or virtual) whereby buyers and sellers come into
contact for the purpose of exchanging goods or services.
Supply and demand
The study of supply and demand helps understand how markets determine an
‘equilibrium’ price and quantity sold (output). Equilibrium means ‘balance’ exists
between two opposing forces of supply and demand, market prices and output will be
unchanged.

Price

Supply

P1

Demand

Q1
Quantity sold
Demand
Demand represents the total quantity that buyers are willing and able to purchase at the
existing market price. The law of demand states that if the market price falls, the
quantity demanded (consumed) for a good or service will rise, and vice versa.
Factors that cause changes in demand
• Advertising.
• Population of a country.
• Expectations of buyers.
• Price of substitute goods or services.
• Price of complimentary goods or services.
• Income of buyers (households).
• Tastes and fashion.

209 | P a g e
Normal and inferior goods
• Normal goods e.g. demand increases when consumer incomes increase, so
demand and income are positively correlated.
• Inferior goods e.g. demand decreases when consumer incomes increase, so
demand and income are negatively correlated.
Necessity and luxury goods
• Necessity goods e.g. normal goods, but demand ‘does not increase by much’
when consumer incomes increase e.g. cigarettes, alcohol, milk and bread.
• Luxury goods e.g. normal goods, but demand ‘increases significantly’ when
consumer incomes increase e.g. houses, holidays, jewellery and luxury brands.
Supply
Supply represents the total quantity that sellers are willing and able to make (or sell) at
the existing market price. The law of supply states that if the market price rises, the
quantity supplied by sellers will rise, and vice versa.
Factors that cause changes in supply
• Climate (weather).
• Price and availability of factors of production (resources).
• Government taxation and subsidies.
• Goods in joint supply e.g. beef and leather.
• Expectations of sellers.
• Technology.
Influences on the level of competition within a market
Competition is the activity of establishing superiority over rivals in the same market e.g.
gaining more sales, market share or profits.
Factors that influence competition
• Number of sellers and buyers in a market e.g. fewer sellers give concentrated
power to charge higher prices to consumers.
• Barriers to entry e.g. obstacles restrict new sellers from entering the market.
• Product features offered by sellers in a market.
• The availability of information to sellers and buyers in a market e.g. imperfect
information may limit rational choice for consumers.
Barriers to entry
• Patents, trademarks and copyrights.
• Product differentiation.
• Government e.g. nationalisation, licences and regulatory controls.
• High set up costs.
• Economies of scale e.g. large established firms benefit from low unit cost.
• High switching costs (or inconvenience) for a customer.
• Location e.g. monopolisation caused by geographic factors.
210 | P a g e
Product differentiation
Product differentiation makes a product stand out to a consumer and distinguish it from
competing alternatives sold by rivals. Product differentiation ‘wins more sales’ and can
allow sellers to charge premium prices.
Examples of product differentiation
• Product design.
• Advertising and distinctive branding.
• After sales support and guarantees.
• Customer relationship management.
Sustainability and the natural environment
Sustainability means that a business can operate without compromising the ability of
future generations to inherit our existing natural resources.
Triple bottom line reporting
• Profit (economic) e.g. maximise sales, profits and cash-flows.
• People (social) e.g. maximise the welfare of stakeholders.
• Planet (environmental) e.g. minimise harm to the natural environment.
Corporate social responsibility (CSR)
A business needs to be aware of the impact of its actions or conduct on society (people)
and how to act in the best interests of stakeholders.
Business ethics
Business ethics is concerned with moral principles or values that guide the right kind of
behaviour or conduct for a business. Business ethics is one aim of corporate social
responsibility.
Principles of ethics for professional accountants
The International Federation of Accountants (IFACs) principles of ethics establishes the
standard of behaviour expected of a professional accountant. The code is principles
based (not rules based) and promotes the ‘spirit of beliefs’ rather than the ‘letter of the
law’. The principles can be remembered using the acronym PIPCO.
• Professional competence and due care e.g. maintain professional knowledge
and skills, and to act diligently when providing professional services.
• Integrity e.g. to be straightforward and honest in professional and business
relationships (transparency, fair dealing and truthfulness).
• Professional behaviour e.g. to comply with relevant laws and regulations, and
avoid any action that discredits the profession.
• Confidentiality e.g. not to disclose private information to a third party, unless
employer or client consent has been given.
• Objectivity e.g. not to compromise professional or business judgment because
of bias, conflict of interest or the undue influence of others.
211 | P a g e
Threats to ethical principles
Threats are situations that may compromise compliance to the code of ethics. The
IFAC’s threats can be remembered using the acronym ASSIF.
• Advocacy e.g. an accountant may promote a client or employers position to the
point that their objectivity is compromised, such as promoting shares in a client,
or representing a client in litigation or disputes with third parties.
• Self-review e.g. an accountant should not evaluate the results of a previous
judgment made or service performed, such as issuing an assurance report on the
effectiveness of a financial system they designed or implemented.
• Self-interest e.g. a financial (or other interest) inappropriately influences a
professional accountants judgment or behaviour, such as having a direct
financial interest in a client, or dependence on large fees received from a client.
• Intimidation e.g. an accountant could be deterred from acting objectively
because of actual or perceived pressures, such as being threatened with
litigation, dismissal by a client, or that a future contract will not be awarded.
• Familiarity e.g. an accountant may have a long or close relationship with a client
or employer and be too sympathetic to their interests, or too accepting of their
work, this may include close or immediate family members.
Ethical safeguards
Safeguards are actions or other measures that reduce threats to an acceptable level.
• Safeguards created by the profession, legislation or regulation.
• Safeguards in the work environment.
Stages of ethical conflict resolution
The following factors may be relevant to a resolution process:
• Relevant facts.
• Ethical issues involved.
• Fundamental principles related to the matter in question.
• Established internal procedures.
• Alternative courses of action e.g. refuse to remain associated, or resign.
Reporting unethical behaviour
The code of ethics for professional accountants states an explicit duty for members to
report any breaches of ethical standards. This can be done by making a complaint to
the AAT’s Professional Standards team.
When disciplinary action may be taken
• Breach of the code of ethics.
• Breach of laws or regulations e.g. money laundering regulations.

212 | P a g e
Possible penalties imposed by AAT
• Members can be reprimanded and warned about future conduct.
• Members can be fined.
• Members can have their license (or membership) suspended or terminated.
Internal disciplinary procedures may also be brought against the accountant by their
employer for unethical or illegal behaviour. Disciplinary action can include warnings
(held on record), suspension from work or termination of employment contact.
Claims for breach of contract and professional negligence may also be brought against
an accountant by their client for unethical behaviour. Professional indemnity insurance
covers or protects an accountant against claims for loss or damage by clients as a
result of providing negligent services.
Whistleblowing
Whistleblowing is a term used when an employee passes on information concerning a
wrongdoing. Making a disclosure is referred to as ‘blowing the whistle’.
Reasons for whistleblowing
• Discovery of bribery, corruption, fraud or money laundering.
• Reporting criminal offences e.g. health and safety, environmental laws etc.
• Reporting misuse of data e.g. GDPR.
• Reporting someone who is covering up a wrongdoing.
Employers may have internal policies and procedures for employees to report unethical
behaviour (‘internal whistleblowing’ or speak-out procedures).
External whistleblowing
• External whistleblowing is the practice of reporting misconduct to outside
sources, such as the police, newspapers and social media.
• Employees should seek legal advice before blowing the whistle externally.
• Whistle-blowers by law cannot be dismissed or unfairly treated.
Personal grievances about bullying, harassment and discrimination are not covered by
whistleblowing laws, unless the case is of wider concern for the general public.
Money laundering
Money Laundering is a perfect description of how this crime takes place whereby ‘dirty’
(illegal) money is ‘washed’ and ‘mixed’ through a process and comes out finally as
‘clean’ (legal) money. The maximum prison sentence for money laundering is 14 years.
The process of money laundering
• Placement e.g. dirty money is deposited (placed) into the banking system.
• Layering e.g. the money is moved around and ‘all mixed up’.
• Integration (or extraction) e.g. criminal proceeds are paid out to criminals and
can be legitimately spent without incrimination.

213 | P a g e
Reporting suspected money laundering
As soon as you know or suspect that a person is engaged in money laundering or
dealing in criminal property, you must submit a suspicious activity report (SAR). Failure
to report suspicion of money laundering carries a maximum penalty of five years
imprisonment. An SAR must be filed normally within 30 days of any potential criminal
activity detected which appears suspicious.
An SAR can be made to an internal money laundering reporting officer (MLRO) if your
organisation has money laundering supervision, or to the National Crime Agency (NCA)
which is a UK government agency that helps fight serious and organised crime.
Information reported in a SAR
• Names, addresses, birth dates, driving licenses, passport numbers, occupation
and phone numbers of all parties involved.
• The identity of the suspects (if known).
• Information and reasonable grounds stated for suspicion of money laundering.
• The location(s) of any laundered property (if known).
• Additional information or other parties connected to the matter.
Protected and authorised disclosure
SARs made to the NCA are either protected or authorised disclosures.
• A protected disclosure is normally how you report suspicious activities and you
are protected against allegations of any breaches of confidentiality.
• An authorised disclosure is for someone who believes they may have engaged in
or are about to engage in money laundering activities, someone may do this as a
defence against money laundering allegations.
Tipping off
You must not say anything to the accused person(s) which may lead to an investigation
being prejudiced. The penalty for telling an individual they are being investigated for
suspected money laundering carries a maximum penalty of five years imprisonment and
an unlimited fine.

214 | P a g e
Emerging and developing technologies
• Automation of processes.
• Artificial intelligence (AI) and machine learning.
• Blockchain.
• Electronic filing of documents.
• Electronic signing of documents.
• Data analytics.
Outsourcing and offshoring
• Outsourcing is the contracting out of operations and responsibilities of a specific
business function (or process) to an external and third-party service provider.
• Offshoring is the relocation of a specific business function (or process) to an
overseas country, outside the national boundaries of where the business
normally resides (carried out internally, or by outsourcing to a third party).
Cloud accounting
Cloud accounting means keeping accounting records and storing financial data online,
using the Internet. Information stored in the cloud is encrypted and only people with the
login and password can view data. Some popular examples of cloud software
accounting packages include Xero, QuickBooks and Sage 50cloud.
Benefits of cloud accounting
✓ Reduces the investment cost for accounting software and storage.
✓ Maintenance and upgrades are centrally managed by the service provider.
✓ Remote data storage so no backup is required.
✓ Supportive to the needs of remote or mobile workforces.
✓ Scalability of services to cost effectively support a large number of end users.
✓ Encourages collaboration and interaction with stakeholders, automates
capabilities and gives access to real-time reporting of data and information.
Limitations of cloud accounting
Lack of access if no internet connection.
Privacy and security risks of sensitive or private information being hacked.
High dependency on services and reliability of cloud services.

215 | P a g e
The principles of data protection
General Data Protection Regulation (GDPR) gives individuals the right to access
personal data held about them. In addition there are obligations for better data
management and a regime of fines for businesses that do not comply with GDPR.
The key principles of GDPR
Everyone that is responsible for handling personal data (‘data controllers’) must follow
strict rules to ensure their legal obligations under GDPR are fulfilled.
• Lawfulness, fairness and transparency e.g. lawful processing of personal data.
• Purpose limitation e.g. reasons for processing personal data must be known.
• Data minimisation e.g. personal data limited to what is relevant and necessary.
• Accuracy e.g. personal data is kept accurate and up to date.
• Storage limitation e.g. personal data only retained for as long as necessary.
• Integrity and confidentiality e.g. security and confidentiality is maintained.
• Accountability e.g. data controllers must be able to demonstrate compliance.
The rights of data subjects
• To be informed about how their personal data is being used.
• To have access and view their personal data being kept.
• To have any incorrect personal data changed (but not erased).
• To prohibit or restrict (in some cases) storage of their personal data.
The impact of data protection breaches on a business
• Loss of data and information.
• Damage to reputation and brand.
• Financial compensation paid to victims e.g. employees or customers.
• Time and cost of public relations and legal investigations.
• Falling share price (if a public listed company).
• GDPR fines for data breaches.

Cybersecurity
Cybersecurity means using technologies, processes and controls to protect computer
systems or networks from a cyber-attack. A cyber-attack is an attempt by a hacker to
damage, steal or destroy data in a computer system or network.
Malicious software (or ‘malware’) is software that is specifically designed to disrupt,
damage, or gain unauthorised access to a computer system. A virus is a type of
computer code that alters the way a computer operates, it can spread like a virus from
one host to another.

216 | P a g e
Examples of cyber-attacks
• Phishing e.g. hackers send out thousands of emails containing a virus.
• Keyboard hijacking e.g. a hacker hijacks a victims keyboard (or mouse).
• Spyware e.g. gathers and sends data to a third-party without a victims consent.
• Ransomware e.g. data files are locked by a hacker and a ransom is demanded.
• DDoS attack (Distributed Denial of Service) e.g. collaborations by multiple users
acting together to overflow traffic to a web server and cause it to crash.
The risks from cyber-attack include damage to reputation and brand, theft of data, fraud,
extortion, fines for GDPR breach and critical meltdown of operations and systems.
Cybersecurity defences
• Policies for strong password protection.
• Educate staff to be vigilant when receiving emails.
• Tighten up physical security in the office.
• Back up files e.g. cloud storage.
• Prepare for cyber-attacks.
• Hire experts to improve controls.
• Firewalls and anti-virus protection software.

Integrity controls
Input controls
Data has been properly authorised and correctly entered in the system.
• Data verification and validation.
• Sequence checks.
• Batch controls.
• Supervision and authorisation.
• Passwords.
• Machine (automated) data entry.
Processing controls
Data has been processed with integrity after it has been entered (input) in the system.
• Batch reconciliations.
• Regular testing.
• Reconciliations with third part evidence.
• Exception reports.
Output controls
Information is viewed only by those authorised and is safeguarded when transmitted.
• Passwords and access levels.
• Information reviews.
• Encryption of data.

217 | P a g e
Information
Information is a vital resource for planning, controlling and decision making.
Types of information
• Financial and non-financial.
• Quantitative and qualitative.
• External and internal.
Attributes of good quality information

The ACCURATE criteria is a useful framework for assessing the characteristics of

useful and effective information.
• A Accurate e.g. reliable (not false, incorrect, or misleading).
• C Complete e.g. all that is required by a user is provided.
• C Cost beneficial e.g. the benefits exceed the cost of providing the information.
• U User friendly e.g. presented in a way that a user can understand.
• R Relevant e.g. a user is provided with all that is requested.
• A Authoritative e.g. information is valid, trusted and can be relied upon.
• T Timely e.g. delivered to a user in a timely manner or by an agreed deadline.
• E Easy to use e.g. information is summarised, charts, colour, no jargon etc.
Characteristics of operational, managerial and strategic information

Comparison Strategic Tactical Operational

TIME PERIOD FORECASTING/LONG-TERM HISTORICAL/SHORT-TERM

OBJECTIVITY SUBJECTIVE OBJECTIVE

QUANTIFIABILITY QUALITATIVE QUANTITATIVE

ACCURACY APPROXIMATE ACCURATE

SOURCES OF DATA EXTERNAL INTERNAL

CERTAINTY UNCERTAINTY OF FORECASTING CERTAINTY OF HISTORICAL DATA

COMPLETENESS INCOMPLETE COMPLETE

BREADTH THE BROAD ORGANISATION A SPECIFIC TASK

DETAIL SUMMARISED AND UNSTRUCTURED HIGHLY DETAILED AND STRUCTURED

218 | P a g e
Big data
Big data can provide enhanced insight for decision making. It is a complex and costly
process to examine large and varied data sets in order to uncover hidden patterns or
trends. The benefits include the creation of new sales opportunities, highly effective
marketing opportunities, better customer service, reduction in cost and improved
operational efficiency.
The characteristics of big data
• Volume e.g. the sheer amount of data captured.
• Variety e.g. the ‘diversity’ of multiple sources of data that is captured.
• Velocity e.g. the sheer ‘speed’ of data processing in real-time.
• Value e.g. data captured provides value or insight for decision making.
• Veracity e.g. data captured is trustworthy, complete and accurate.

Sources of internal data

• Customer (sales) data e.g. databases or sales teams.
• Emails and documents generated.
• Transaction processing systems e.g. sales, purchases, inventory and payroll.
• Google analytics for website traffic and statistics.

Sources of external big data

• Social media sites like Facebook, Instagram and Twitter.
• Government data e.g. economic data from the Office for National Statistics.
• Google e.g. search queries relating to certain products.
• Customer data e.g. demographic information.
• Weather forecasts.

Visualising information
Visualisation is the visual representation of data which allows a user to see and
understand it in a more intuitive way. It helps a user identify actions, trends,
correlations, patterns or significant anomalies.
Task 6 of your exam will include a written question that may require you to interpret
visual data and to indicate information, relationships and trends, using images, charts,
diagrams, tables, matrices and graphs.
Dashboards support users to make data driven decisions in real-time and are a
powerful way to communicate information and help technically or non-technically
minded staff find quickly the answers they need.

219 | P a g e
Communicating information
• Communication is when a sender exchanges information with a recipient.
• Communication mediums include face to face, text, phone call, letter or e-mail.
• Communication can be written, verbal (speaking) or non-verbal (body language).
• Principles of effective communication include being clear, correct, complete,
concrete, concise, considerate and courteous.
• Recognising valid and invalid information and exercising scepticism.
Communication mediums
• Letters, emails and instant messaging.
• Face to face presentations and meetings.
• Telephone calls.
• Intranet, Internet and social media.

Principles to determine an effective communication medium

• The purpose of communication.
• Whether the message is short or complex.
• Confidentiality e.g. to whom information can be disclosed.
• How urgent is the message.
• Does information or feedback need to be gathered.

220 | P a g e