validity of information?
the underlying transaction must be genuine (actually occurred), and is in terms of mgmt policy
accuracy of information?
all the inputs and calculations of info is correct and it is in the correct account
completeness of information?
ensured when all relevant information is recorded, in the correct period in a timely manner
operational objectives?
- safeguarding of assets
- business continuity
- economy, efficiency, effectiveness of ops
- info confidentiality
- preventing fraud
- compliance with laws
components of ITGC?
- control environment
- systems dev/implementation controls
- access controls
- continuity of operations
- system software/operating controls
- documentation
general controls for all cycles?
segregation of duties custody of assets recons unused stationery mgmt supervision authorisation
types of application controls?
input
processing
output
masterfile
components of internal control?
control environment risk assessment process information systems control activities monitoring of controls
sections in Companies Act?
- s28 = accounting records
- s29 = financial statements
- s43 = soc / ethics committee
- s69 = disqualified / inelligible
- s75 = personal financial interest
- s76 = standards of directors conduct
- s77 = liability for losses
- s94 - audit committees
CPC fundamental principles?
Confidentiality of info Objectivity Prof competence and due care Prof behavior Integrity
categories of threats?
- self interest
- self review
- familiarity
- advocacy
- intimidation
stages of the sales cycle?
- ordering by customers
- warehouse and dispatch
- invoicing and recording
- managing debtors
- returns
stages of the purchases cycle?
- ordering goods from suppliers
- receiving goods into warehouse
- recording the transactions
- making payment
stages in production cycle?
- determining RM / production needs
- transferring RM and FG
- costing and storing inventory
stages in the payroll cycle?
- personnel
- timekeeping
- preparing the payroll
- payment preparation and payout
- recording
validity objectives for payroll?
- wages paid in respect of actual work done by company employees
- gross wages recorded in accordance with company policy using auth. rate of pay and no. of hours worked
- rate of pay ito relevant legislation
- deductions in terms of labour laws and personnel deductions are auth. by employees
accuracy objectives for payroll?
- net wages are calculated using correct pay rate, no. of hours and deductions
- payroll is correctly recorded in journals and GL accs
completeness objectives for payroll?
- all payroll costs accounted for and recorded in correct acc period
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Week 129
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2 - King IV Principles 4 - 1640
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3 - King IV, Ethics: P1-315
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3 - CPC for Professional Accountants14
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4 - Companies Act17
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5 - Objectives and Internal Controls16
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6 - Application Controls, Masterfiles & ITGC13
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8 - Sales Cycle20
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11 - Purchases Cycle16
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11 - Production Cycle19
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12 - Payroll Cycle31
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Important Concepts18
