SAP Flashcards
general technology controls
technological infrastructure, security management, technological acquisition and maintenance.
Overarching and organization wide like password requirements
application controls
built within software. Error messages to control what we mess up
completeness check
all required data for a record/transaction has been entered before a user can continue
limit check
tests the amount against the “floor” or “ceiling.;
Ex- customer order vs available credit, and regular hours worked can’t go over 40 hours
range check
like a limit check but has both a “floor” AND a “Ceiling” running concurrently. Ensures efficiency
ex- Each order of rocking chairs has to be at least 5 and less than 1000.
sign check
Is the number entered the appropriate sign? (positive or negative.) If there are options for debits and credits then all numbers should be positive.
size check
that data fits into appropriate field. Zip codes are 5 or 9 digits, phone numbers are 10 digits
closed loop verification
works with validity check and displays supplementary info so the user can ensure that the correct that the correct data is being utilized.
ex- when a vendor number is entered on a PO, the vendor name also populates
zero balance test
compares numerical data to a pre-determined result.
ex- journal entries, debits - credits = 0
validity check
compares entered data to standing data
ex- customer number enter on a PO to customer list and PO number entered on a receiving report to open POS.
field check
ensures that data entered is the proper type
ex- numbers in amount fields, and text in data fields. Message “data type mismatch”
reasonableness check
applies logic between categories to determine potential anomalies.
ex- 5,000 a day for office supplies compared to 5000 for raw materials.
3 activities that should be segregated
authorization, recording, and custody
role, profile, and User ID determines what the user is allowed to do within SAP. If they work in sales then they can only see sales interface
master data
Can edit but updates are not cascading meaning you can’t fix past errors
transaction data
assumes all documents have been sent/used when created
what should the journal entry recorded be when you create a purchase requisition
none
what should the journal entry be when you create the purchase order
none
what should be the journal entry when you create a receiving report (goods receipt)
D: Inventory
C: GR/IR
what should be the journal entry when you create an invoice
D: GR/IR
C: AP
what does it mean when there is a credit amount for GR/IR
we recorded too much goods. Because Invoice entry should make the GR/IR account = 0. Detective control
goods receipt defaults to
all goods ordered were received, doesn’t seem like a good idea
vendor kick back
purchasing fraud. Real invoice, real goods, existing vendor, but prices are too high. Surplus goes to salesman
fictitious vendor
purchasing fraud. Fake vendor, fake invoice, and fake goods but there is a payment.
An indication of a lack of segregation of duties- person has the ability to create fake master data, record transactions, and authorize them.
key control in purchasing
3 way match
segregate duties
inventory clerk- checks stock, forecast demands, and can issue purchase requisitions
purchasing clerk- executes purchase order
warehouse clerk- receives goods
accounting clerk- does 3 way match
controller- approves the check
All of these people shouldn’t be able to record the transaction because they can lend themselves money
job order costing
distinct products and cost are traced back by job or batch
process costing
large batches of homogenous products and average cost per product is determined
