Investment and Finance Cycle and EFT payment controls

Investment Activities

Financing Activities

DIsposal of Fixed Assets

Repair and Maintenance of Assets

Additions to Fixed Assets

Owners Equity

Borrowings

Authorization

Risk: Assets disposed still show on asset register

Risk: Items might be capitalized instead of expensed

Dividends

Statutory Requirements

Interest

Authorization

Repayment terms

Control

Internal Control

Test of Control

Control Objectives

Substantive Testing

EFT

Weaknesses and Recomendations

Assertions

Substantive Procedures

Rights and obligations

Valuation

Existence

Presentation and Disclosure

Completeness

observing physical inventory

performing analytical procedures

confirming information with external sources

reviewing management's representations

validating journal entries and account balances

examining details of accounts and disclosures

Weak internal control environment = risk

Access limited to one computer

Proper Access Control

Multi Level Passwords

For payment, 2x passwords by 2x different snr persons

Terminal shutdown after 3x consecutive failed login attempts

Recon by independent person from payment