Investment and finance cycle and EFT payment controls
Introduction to the finance and investment cycle
Obligations which arise out of the finance raised
the application of funds raised for the acquisition of assets
Raising of finance and repayment
Interest
dividends
Substantive Testing
Investment Activities
Examples of fraud
Omitting long term liabilitites
understating the value of long term loans
Overstating assets by including fictitious assets or assets which the company does not own
Overstating assets by understating depreciation allowances or impairment
Finance Activities
Disposals of fixed assets
Repair and maintenance of assets
Additions of fixed assets
Owners equity
Borrowing
Concepts
Internal controls
Test of controls
Control Objectives
Substantive analytical procedures
Detail substantive procedures
Weaknesses and Recomendations
Recommendation
Risk
Weakness
ETF Controls
Terminal should shut down after 3 unsuccessful attempts
Two passwords, Two senior employees
Proper access controls
Audit trail
Limited to one computer
Reconciliation should be done by someone independent of EFT transaction made
Multiple level passwords