Unit 1: Finance and Investment Cycle
INVESTMENT ACTIVITIES
FINANCING ACTIVITIES
Key documents
click to edit
• Accumulated depreciation
• Profit/Loss on disposal
• Depreciation
• Fixed Assets
General Ledger accounts:
Fixed Asset register
Invoices (purchases and sales)
Minutes of Board of Directors (authorisation of purchases and sales)
Fixed Asset requisition with quote/negotiated prices
Capital budgets
1) ADDITIONS OF FIXED ASSETS
2) DISPOSAL OF FIXED ASSETS
3) REPAIR AND MAINTENANCE OF ASSETS
Key Documents
Minutes of shareholders/directors
Debenture trust deed
Prospectus
Share certificate
Loan/lease contract
Mortgage bond
Journal voucher
Financial statement assertions
Existence
Completeness
Rights and obligations
Valuation
Completeness
Presentation and disclosure
Control objectives
Test of controls
Internal controls
refers to the way we test whether the internal controls are working as designed
refer to certain objectives that the organisation wants to achieve with regards to every transaction
refer to the control activities that the organisation should implement to ensure they achieve the desired objectives
Substantive testing
is an audit procedure that examines the financial statements and supporting documentation to see if they contain errors.
- Owner's Equity
- Borrowings