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 a lot of financial transactions such as investing, borrowing, and lending money. Proper authorizations and competent personnel are essential for this cycle as there is a significant risk of fraud, errors, and misstatements. The controls in this cycle should ensure that only authorized personnel are involved in financial transactions and that they are competent enough to handle the transactions properly.

The Focus of Controls in the Finance and Investment Cycle