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AIs Chapter 9 Review
Most Common Application Controls
31
Accounting
Undergraduate 4
11/30/2010
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Term
Application Controls
 Definition
are controls over the input, processing, and output of a transaction processing system.
Term
Source Document Controls
 Definition
Document Design, Written approvals, restricted access, and pre-numbered documents.
Term
Document Design
 Definition
Documents should be designed to be easy to read, understandable, and easy to complete.
Term
Written Approvals
 Definition
Documents should require authorized signatures prior to being input and processed.
Term
Restricted Access
 Definition
Only the people who work with the documents have access to them.
Term
Pre-Numbered Documents
 Definition
Blank Documents should be sequentially pre-numbered.
Term
Input Controls
 Definition
Term
Enter data fast and close to source
 Definition
when possible, source documents should be input at the point of origin, rather than sent to a central processing department.
Term
Batch Controls
 Definition
when processing documents in batches, perform summations of field amounts and/or document characteristics.
Term
Automated data input
 Definition
where possible, data input should be automated through the use of a computer-readable source documents.
Term
Online Controls
 Definition
online data entry should be facilitated where possible.
Term
Prompting
 Definition
prompt users at input fields and describe what they should be inputting in the field.
Term
Pre-formatted Screens
 Definition
format screens to look like the source document being used.
Term
Default Values
 Definition
provide default values in required fields where values seldom change.
Term
Populate inputs with master data
 Definition
auto-populate fields when possible by retrieving related master data.
Term
Compare Inputs with Master Data
 Definition
compare inputs with master data to detect conflicting data.
Term
Edit Tests
 Definition
Validate data upon input.
Term
Data Type
 Definition
check for expected data types.
Term
Valid Codes
 Definition
When possible, check against a list of valid values.
Term
Reasonableness Test
 Definition
When possible, evaluate against range of values.
Term
Sign Test
 Definition
Check for the expected sign for amounts.
Term
Required Field
 Definition
require fields to be completed when possible.
Term
Check Digit
 Definition
for numerical values, include a digit that is the result of a calculation performed upon the other digits.
Term
Redundant Data Check
 Definition
use two identifiers for a transaction before allowing data to be input.
Term
Key Verification
 Definition
for data entry where it is highly important to ensure accurate input, have two people perform the input task and compare results.
Term
Sequence Check
 Definition
for pre-numbered documents, check against the list or range of valid numbers.
Term
Digital Signatures
 Definition
for electronic data transmissions, use digital signatures to ensure the authenticity of messages and enable non-reproduction.
Term
One-for-One Matching
 Definition
comparison of two or more documents on corresponding data elements.
Term
Tickler Files
 Definition
for data in need of follow-up, assign responsibility to periodically review such files and take appropriate action.
Term
Processing Controls
 Definition
Batch Control Reconciliation: after each input or processing step, compare previously calculated batch totals to current batch totals; when possible, have the computer perform the reconciliation.
Term
Output Controls
 Definition
Validating Output: review output to ensure it is accurate. Controlled Distribution: keep all output private and disclose only to authorized parties, keeping a log of distributions. Shredding: shred output documents when their useful life has ended.
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