IT Controls- Application Controls

Question 1

What are application controls?

Answer 1

Affect a particular activity (payroll, cash disbursements)

Question 2

What are the three types of application controls

Answer 2

Input

Processing

Output

Question 3

What are some input controls?

Answer 3

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)

Question 4

What are error resolution procedures?

Answer 4

Always relevant. They should always be looked at.

Question 5

What are controls related to processing activities?

Answer 5

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

Question 6

What are output controls?

Answer 6

Output limit- an upper limit for printing time

Control totals- same as input!

Error Resolution procedures- always relevant! You should always fix ANY ERROR!!