The focus of controls in the finance and investment cycle is on:
A)proper authorizations and competent personnel.
B)computer controls over transactions.
C)physical security of assets.
D)prenumbered documents.

Question

Quizplus · Accepted Answer

The finance and investment cycle involves transactions related to cash receipts, cash disbursements, and investments. Therefore, the focus of controls in this cycle is on proper authorizations and competent personnel to ensure that transactions are properly authorized, recorded, and reported. Computer controls and physical security may also be important, but they are not the main focus in this cycle. Prenumbered documents can be used as a control, but they are not specific to the finance and investment cycle.

The Focus of Controls in the Finance and Investment Cycle