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Alternative summarised version of tests of controls
· Segregation of duty (staff records are separate from wages department)
· Documentation (written evidence)
· Authorisation(by senior personnel)
· Review(by senior personnel of other staff work)
Remember no control is fool proof. Humans are careless, misunderstand, distracted easily and make mistakes. Collusion may always happen to override controls and responsibility given could always be abused.
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It is the exercise price at which the investor or the bondholder exchanges the bond for shares.
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