Can Anyone Explain Internal Check Over Investment?

The investment must be purchased by a competent person. The top level management has authority to purchase investments. The signature of managers on the vouchers means authority to buy. The sales of investment should be made by authorized person. The decision of sales must be in favor of business. The signatures of responsible officers on papers can be examined to note the sales powers. The investment certificates must be kept by senior officers. The person who holds investment must not be allowed to make entries in register. The lockers or iron safe can be used for safe keeping.

The investment register must be maintained by staff. The movement of investment should be recorded in it. The register can show the types of securities available at present. There is a need of periodical physical verification of investment. The investment certificates and documents must tally with investment register. The auditor can inspect and count the investments.

The brokers note must be examine in order to check the terms and condition of purchase and sale of investments. They note can provide information to keep internal check over investments. The charges of investment must be examined. The proper receipt must be available with management. All the charges must be accounted for at the time of calculation of prices of investments.