Input and Organization Controls Flashcards
What do put and origination controls ensure?
Reliability of application program data and processes
Enables auditor to assess risks if absent or weak
Some may function as input or processing controls
Best “input” control is often to get humans out of it (automate data entry)
- Hence growing use of term origination to replace input
What are examples of origination?
Scanning instead of human entry
Goal: Accuracy completeness
What is closed loop verification ?
Use entered data to display additional (confirming data)
Goals: C (all data entered), A (entered data accurate)
What are control totals?
Used in batch systems
- Financial total - Add invoice amounts
- Hash total - Add invoice #s (something that isn’t normally summed)- tend to only be known by accountants which is useful because hackers don’t know about these numbers
What is a sequence check?
Application control
Sequence check - confirm numerical sequence (of check or invoice numbers). Usually automated but may be manual.
Goal: C (all valid are included)
V (no invalid are included)
Key verfication- Re-key (re-enter) and compare critical data
Goal: Validity
What is completeness check?
If there is something that is missing, you’re not allowed to move forward to the next screen. You need to make sure that all the data is present.
What is a field check?
Make sure the data entered is correct. Example: Phone number may have only a certain amount of digits, zip codes, etc. Goal is accuracy.
What is a limit test?
Numberic field with specified values. Validity and accuracy
What is range test?
Validate upper and lower limit
Price per gallon cannot be less than $2 but not greater than $10.
What is a sign test?
has correct sign (+ or -)
Example # purchased has to be greater than zero
What is a valid code test?
Does entered account # exist?
Does the customer have a valid code?
Testing Validity and accuracy
What is a reasonableness check?
Do two or more field agree
Example: Don’t allow pay rate $3500 and pay period = hourly
