Input and Origination Controls Flashcards
What purpose do check digit tests serve in accounting systems?
Ensures that validity of a number. Created by applying an arithmetic algorithm to the digits of a number, for example, a customer’s account number. The algorithm yields a single digit that is appended to the end of the code.
Define “default values”.
Pre-supplied data values for a field when that value can be reasonably predicted. For example, when entering sales data, the sales order date is usually the current date; Fields using default values generate fews errors than other fields.
How do preprinted forms and preformatted screens improve data input?
They reduce the likelihood of data entry errors by organizing input data in a logical manner. When the position and alignment of data fields on an entry screens matches the organization of the fields on a source document, data entry is faster and more accurate.
Define “hash total”.
Totals of a field, usually an account code field, for which the total has no logical meaning, such as a total of customer account numbers in a batch of invoices.
Why are input controls more important than processing and output controls?
Garbage in, garbage out (GIGO), if bad data enters the system nothing good will come out of it
How does a sequence check improve data input?
Verifies that all items in a numerical sequences (check numbers, invoice numbers, etc. ) are present. It is a common control for assessing record completeness.
How does a reasonableness check (also called a logic test) improve data input?
Checks to see that data in two or more fields is consistent. For example, a Rate of Pay value of “$3,500” and a Pay Period value of “Hourly” may both be valid values for the fields when the fields are viewed independently. However, the combination (an hourly pay rate of $3,500) is not valid.
Define “automated data capture”.
Use of automated equipment, such as bar code scanners, to reduce the amount of manual data entry. Reducing human involvement reduces the number of errors in the system.
How does closed loop verification improve data input?
This helps ensure that a valid and correct entry has been made. For example, after a customer’s account code is entered, the system looks up and displays additional information about the selected customer. For example, the system might display the customer’s name and address.
What are three important goals of input controls?
Validity, completeness, accuracy
