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Investment and Finance cycle EFT and payment controls - Coggle Diagram
Investment and Finance cycle
EFT and payment controls
Definition
Deals with raising of funds, which are used to purchase fixed assets
Cycle deals with
Raising of funds and their repayment
Obligations arising out of funds raised (interest and dividends
Application of funds raised for the acquisition of assets
Transactions are large and material
Transactions usually governed by legal or regulatory requirements
Investment activities
Acquisitions, disposals, and management of fixed assets
3 areas in investment cycle
Addition of fixed assets
See capex process in annexure A
Disposal of fixed assets
Need to check its been removed from fixed assets
Repairs and maintenance of fixed assets
Need to check items have been correctly stated
List of documents - see annexure A
Captial Budgets
Requistion with quote
Minutes of board meetins
Invoices
Fixed Asset register
General Ledger Accounts
List of affected accounts - see annexure A
Financing activities
Equity
Actitivies
Issue of shares
Share buy backs
Statutory requirements
Authorisation of the issue of shares
Declaration of dividends
Debt
Activities
Cash inflow from borrowings
Subsequent repayment of the captial sum
Interest charged on borrowings
Authorisation required for borrowings
See Annexure A for a list of docs
Control Objectives - Investment activities
Occurence / validity
Authorisation
Completeness
Accuracy
Recording
Classification
Cut Off