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    Which are the main internal controls for finance and investm

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    Which are the main internal controls for finance and investment cycle?

    Answer must be sustantive.

    Level: Master in Accounting

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    Which are the main internal controls for finance and investment cycle?

    Solution:

    The main internal controls that have to be examined in the finance and investment cycle lie directly within the Board of Directors and management. The auditor needs to gain an understanding of the policies that involve the finance and investment cycle. Areas that need to be researched and understood include how and when the company pays out dividends, and of particular importance is reconciling net income with appropriate equity accounts. Manipulation of the company's net income should be examined from the point of internal control on both grounds - from net income, and also from owner equity and the investment ...

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    Which are the main internal controls for finance and investment cycle are determined.

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