IT Controls- Application Controls Flashcards
What are application controls?
Affect a particular activity (payroll, cash disbursements)
What are the three types of application controls
Input
Processing
Output
What are some input controls?
1) Preprinted forms- so employees know exactly where to look for particular items of information
2) Keypunch verification/duplication
3) Control totals:
- Hash totals: NOT MEANINGFUL totals (adding phone numbers)
- Record Counts
- Batch Total: MEANINGFUL totals (sales for the day to get a total sales number)
4) Limit test- Within a predetermined range (no one can have a two week pay in excess of $5,000)
5) Validity check- Look for a legitimate code (e.g. M or F)
6) Missing data checks- any omissions?
7) Check digits- arithmetic manipulation (added on a the end of a numeric field)
What are error resolution procedures?
Always relevant. They should always be looked at.
What are controls related to processing activities?
1) Checkpoint/restart- For long applications (don’t have to start over in event of crash)
2) Limit on processing time- An upper limit
3) Internal and external labels
4) Control totals- same for input
What are output controls?
Output limit- an upper limit for printing time
Control totals- same as input!
Error Resolution procedures- always relevant! You should always fix ANY ERROR!!