Study unit 7.6

Question 1

What is the planning controls with regards to capital expenditure

Answer 1

Capital expenditure committee
Capital expenditure budget
Consider alternatives - request tenders
Actual performance = budgets

Question 2

What is the security controls with regards to capital expenditure

Answer 2

Physical security
Detailed fixed asset register
Regular maintenance
Personal use policy
Insurance cover

Question 3

What is the authorisation controls with regards to capital expenditure

Answer 3

Highest level - board of directors
Minute resolution
Authorisation 
Legal advice - contracts
Signed contract

Question 4

What is the review and approval controls with regards to capital expenditure

Answer 4

Progress reporting
Compliance plans and budget
Independent scrutiny - internal audit