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ACC701 research assignment final.docx - FIJI NATIO NAL...

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VIRTUAL GROUPRESEARCHASSIGNMENTWEIGHTING: 20%FIRST KEYSTONE BANKQUESTION 1i.Separation of duties:FIJINATIONALMEMBERS:1.SHAZIDA BIBI- 20180021052.SHIVENDRA NAICKER- 20180003393.PATRICK SHIVNIL DEO- 2018000167
Thesame individual should not handle every transaction.As such, there should bedifferent person carrying out different tasks so that fraudulent activities cannot occur. Forinstances, banks should separately provide the work of managing the ledger controlsheets to a different individual (like; upper levels for inspecting and reviewing) to makesure that the cash will not be taken from the ATM. Nevertheless, the individual inspectingand reviewing should be changed [like; every two weeks or in a month] in order to avoidhaving the conspiratorialrisks.ii.Risk assessment:The procedure of identifying and analysis by management of relevant risks to achievingpredetermined objectives of a bank. Thus,effective internal control systems involvematerial risks that could dangerously affect the accomplishment of the bank’s objectivesto be recognized and often assessed. As such, this assessment should conceal entire risksfacing by the bank and the combined banking organization (such as; credit risk, marketrisk, interest rate risk, liquidity risk and operational risk). Internal controls may need tobe revised appropriately to address any new or previously uncontrolled risks.iii.Control activities:Control activitiesshould be an essential portion of the regular doings of a bank. Aneffective internal control system requires that a suitable control structure is established,with control activities well-defined at each business level. Hence, these should consist of:upper level reviews; suitable activity controls for different departments; physicalcontrols; inspection for compliance with exposure restrictions and addition on non-compliance; a system of consents and authorizations; and a systemof confirmation andreconciliation.iv.Information and communication:Employeesare able to convey their duties efficiently, when correct information andcommunication control are given to them. Thus, effective internal control systems requirereliable information systems to cover entire substantial activities of the bank, thesesystems, comprising those that hold and use data in an electronic form, must be secured,supervised independently and supported by adequate contingency arrangements.

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Term
Summer
Professor
NoProfessor
Tags
Embezzlement

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