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Unit 1- Finance and investment cycle - Coggle Diagram
Unit 1- Finance and
investment cycle
Cycles deals mainly of rising funds and repaying it. The interests and dividends due to the funds raised. Lastly the acquisition of the assets.
Internal controls, and
Control objectives
Occurance/Validity
Authorization
Completeness
Accuracy
Recording
Classification
Cut-off
General controls
Test of controls
This is used to test and see whether the internal controls are working as designed.
Substantive
testing
An audit procedure that examines
the financial statements and supporting documentation to see if it contains any error
Weaknesses
No authorisation process to authorise the purchase of a new asset
EFT
Bank must reconcile every month
Multilevel passwords should be used
Limited access of EFT on computers
Completeness tests should be performed
Two people should enter the passwords and details simultaneously
Reccomendations
Implement proper internal control processes, to ensure that all purchases are authorised
Risk
The organization will be purchasing assets that they do not need
Substantive
analytical procedures
An auditing procedure that compares current budgeting information to prior years budgeting information, as well as non-financial information.