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Group 4 Ais

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13 views20 pages

Group 4 Ais

Uploaded by

aimansobair2
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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APPLICATION SOFTWARE

AND
APPLICATION CONTROLS
APPLICATION SOFTWARE
➢ Is a computer program that help
user to performs a specific task in
the system.
➢ Applications software accomplishes
end user tasks such as word
processing spreadsheets, database
maintenance, and accounting
functions.
APPLICATION CONTROL
➢ Application controls are used
specifically in accounting applications
to control inputs, processing, and
outputs.
➢ Application controls are intended to
ensure that inputs and processing are
accurate and complete and that
outputs are properly distributed,
controlled, and disposed.
Types of Control
Input Control
Processing Control
Output Control
Input Control
➢ are intended to ensure the accuracy
and completeness of data input
procedures and the resulting data.

Four Types of Input Control


1. Source document controls
2. Standard procedures for data
preparation and error handling
3. Programmed edit checks
4. Control totals and reconciliation
Source Document
Controls
➢ A source document is the paper form
used to capture and record the original
data of an accounting transaction. For
example, before filling in the blank fields
in Exhibit 4-8, the data entry person
needs to know the new employee’s name,
address, hire date, and many other
pieces of information.
Source Document Controls
Several Document Control
FORM DESIGN
➢ Both the source document and the input screen should be well
designed so that they are easy to understand and use, logically
organized into groups of related data. For example, notice that
employee name and address blanks, or fields, are located very
close to each other, since they are logically related. Source
documents should have clear and direct instructions embedded
into the form.

FORM AUTHORIZATION AND CONTROL

➢ The source document should contain an area for authorization by


the appropriate manager, such as the bottom left of the form in
Exhibit 4-9. The source document forms should be prenumbered
and used in sequence. Prenumbering allows for ongoing
monitoring and control over blank source documents.
Several Document Control
RETENTION OF SOURCE DOCUMENT
➢ After data from source documents have been keyed
into the computer, the source documents should be
retained and filed in a manner that allows for easy
retrieval.
STANDARD PROCEDURES FOR DATA INPUT

DATA PREPARATION ERROR HANDING


➢ The procedures to collect and prepare ➢ As data are collected on source
source documents are called data documents or entered on screens,
preparation procedures. Without well- errors may occur. It is not possible to
defined source data preparation eliminate all errors. Therefore, an
procedures, employees would be organization should have error
unsure of which forms to use, as well as handling procedures.
when to use them, how to use them,
and where to route them.
PROGRAMMED INPUT
VALIDATION CHECKS
➢ Data should be validated and edited as
close as possible to the time of obtaining
the data from its original source. In many IT
systems that process transactions in real
time, editing can take place during data
entry.
INPUT VALIDATION CHECKS INCLUDED

FIELD CHECK VALIDITY CHECKS


➢ A field check examines a field to ➢ A validity check examines a field to
determine whether the appropriate ensure that the data entry in the field
type (alpha or numeric) of data was is valid compared with a preexisting list
entered. If the wrong data type is of acceptable values.
entered, the application should reject
that data and alert the user with an
error message.
INPUT VALIDATION CHECKS INCLUDED

LIMIT CHECK RANGE CHECKS


➢ A limit check has only an upper limit; ➢ A range check has both an upper and a
for example, hours worked cannot lower limit. Some fields, such as
exceed a value of 70 hours per week. quantity requested, may logically
Hours worked would never be negative, suggest that the entry cannot be less
and it is conceivable that it could be than 1.
zero in some cases. Therefore, there is
no need for a lower limit in that field,
and a limit check would be appropriate.
INPUT VALIDATION CHECKS INCLUDED

REASONABLENESS CHECK COMPLETENESS CHECKS


➢ A reasonableness check compares the ➢ A completeness check assesses the
value in a field with those fields to critical fields in an input screen to
which it is related to determine make sure that a value is in those
whether the value is reasonable. fields.
INPUT VALIDATION CHECKS INCLUDED

SIGN CHECK SEQUENCE CHECKS


➢ A sign check examines a field to ➢ A sequence check ensures that the
determine that it has the appropriate batch of transactions is sorted in order,
sign, positive or negative. but does not help find missing
transactions because it checks only
sequence, not completeness.

SELF-CHECKING DIGIT
➢ A self-checking digit is an extra digit
added to a coded identification
number, determined by a
mathematical algorithm.
Control Totals and Reconciliation
CONTROL TOTALS
➢ Are subtotals of selected fields for an entire batch of
transactions. For a batch of similar transactions, such as
payroll transactions for a pay period, control totals can
be calculated before data are processed.

RECORD COUNTS
➢ Are a simple count of the number of records processed.
The records can be counted prior to and after input, and
the totals should agree.
Control Totals and Reconciliation
BATCH TOTALS
➢Are totals of financial data, such as total
gross pay or total federal tax deducted.

HASH TOTALS
➢Are totals of fields that have no
apparent logical reason to be added.
PROCESSING CONTROLS
➢ Processing controls are intended to
prevent, detect, or correct errors that
occur during the processing in an
application.
➢ Processing controls are intended to
ensure the accuracy and completeness
of processing that occurs in accounting
applications.
➢ This reconciliation of control totals at various
stages of the processing is called run-to-run
control totals.
OUTPUT
CONTROLS
➢ Output Control are intended to help ensure the
accuracy, completeness, and security of outputs
that result from application processing.

➢ Many outputs in an IT system are reports from


the various applications. An example of an
output report is a payroll check register. There
are two primary objectives of output controls:
➢ To ensure the accuracy and completeness of the
output, and to properly manage the safekeeping
of output reports to ascertain that security and
confidentiality of the information is maintained.
➢ To ensure accuracy and completeness, the
output can be reconciled to control totals.
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