Please enable JavaScript.
Coggle requires JavaScript to display documents.
The finance and investment cycle - Coggle Diagram
The finance and investment cycle
Important documents
Requisition
Capital budget
Contracts
Control objectives
Authorisation
Validity
Completeness
Accurancy
Recording
Classification
Cut off
General control
Internal controls
Measures that are taken to prevent unwanted events
Assets are kept in a safe place
Reconciliation is done on a regular basis
What the cycle deals with
Obligations that rise
Raising of funds and repayments
Application of funds
Charecteristics
Few transactions
Transactions are usually material
Weakness
A company appoints an accountant to do the financial statements but there is no one to review that everything is correct.
Substantive testing
This is an auditing procedure to check if financial statements and supporting documents have errors
Assertions involved are existence, rights and obligations, accuracy, Valuation, completeness, cut off, presentation and disclosure.