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Investment and Finance Cycle and EFT Payment Controls - Coggle Diagram
Investment and Finance Cycle and EFT Payment Controls
Functions
Financing Function: This involves raising capital to fund the business. It could take the form of issuing share capital or borrowing money from shareholders or a financial institution.
Investment Function: This involves deciding what the company does with its money. A company might invest in property, premises, or other fixed assets necessary for manufacturing goods. Excess cash might be invested in the stock market, put into the bank, or used to acquire additional businesses.
Control Objectives
Occurrence/Validity
Authorisation
Completeness
Accuracy
Recording
Classification
Cut off
General Controls
Weaknesses and risks
Understatement of Liabilities
Overstatement of Investments
Invalid Transactions
Impulse Buying
Overspending
Fraud Risk
EFT Payment Fraud
Substantive testing
Audit procedure that examines the financial statements and supporting documentation to see if they contain errors
Existence
Rights and Obligations
Valuation
Completeness
Presentation and disclosure
Documents
Capital budgets
Fixed Asset requisition with quote/negotiated prices
Minutes of Board of Directors (authorisation of purchases and sales)
Invoices (purchases and sales)
Fixed Asset register
General Ledger accounts:
Fixed Assets
Depreciation
Profit/Loss on disposal
Accumulated depreciation
Internal controls
Responsibility Isolation
Terminal Access Control
Two-Signature Principle
Automatic Shutdown
Password/Identification Controls
Designated Clearing Account
Transfer Limitation
Encryption