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Finance and Investment Cycle: - Coggle Diagram
Finance and Investment Cycle:
Raising of finance - Few transactions - Material
Obligations that arise out of the finance raised
The application of funds raised for the acquisition of assets
This cycle presents the directors of a co with ample opportunities to commit fraud.
Investment activities
Additions of assets
Disposals of activities
Repair and maintenance of assets
Financing activities
Owner's equity
Issue of shares
Share buy-backs
Declaration of dividends
Borrowings
Cash inflows from LT/ST borrowings
Repayment of capital sums
Interest charged on borrowings
Internal controls
Objective
Occurence/Validity
Authorisation
Completeness
Accuracy
Recording
Classification
Cut off
General controls
How the objective will be achieved
Weaknesses and recommendations
EFT's
Multilevel passwords
Access limitation
Access control over terminals
Two passwords, two employees
Audit trails