Authorisation and approval of capital expenditure
Done by senior management and limits to authority. Major capital expenditure authority left to the board.
Done by a person who has no access to the fixed assets and no responsibility for authorising sales or purchases.
Records on location and value of fixed assets.
Scrapping, sale or transfer of assets.
Highest level of management’s affair only on the basis of documentation that is properly approved.
- Appropriate measure at all points of access into the company.
- Reconciliation of plant points of access into the company.
- Segregation of duties.
- Authorisation of purchases and sales should be done by very senior level management and should have no connection with cash and custody of titles.
- Maintain investment register; Done by clerks who has no access to documents of title and no authorisation for sale or purchase.
- Maintenance of records; Share transfer, rights issue, bonuses, dividends and interest capital repayment.
- Document of title; adequate custody must be maintained.