COMPUTERASSISTED AUDIT TOOLS and TECHNIQUES

Application Controls
These are programmed procedures designed to deal with potential exposures that triggers specific applications.

Three Broad Categories:

1.INPUT Controls 2.PROCESSING Controls 3.OUTPUT Controls

INPUT CONTROLS
These are designed to ensure that these transactions are valid, accurate and complete. Input controls can either be:

Source Document Triggered requires human involvement and is prone to clerical errors. Direct Input employs real-time editing techniques to identify and correct errors immediately.

Cases of Input Controls:

Source Document Controls Data Coding Controls Batch Controls Validation Controls Input Error Correction Generalized Data Input Systems

Source Document Controls Careful control must be exercised over physical source documents in systems that use them to initiate transactions. Data Coding Controls Coding controls are checks on the integrity of data codes used in processing.
Three types of errors that corrupt data codes: Transcription errors Addition errors Truncation errors Substitution errors Transposition errors Single Multiple

Batch Controls are effective method of managing high volumes of transaction data through a system. This provides assurance that : All records in the batch are being processed. No records are processed more than once. An audit trail of transactions is created from input through processing to the output stage of the system.
2 Documents used: 1. Batch Transmittal Sheet 2. Batch Control log

Validation Controls are intended to detect errors in transaction data before the data are processed.
Three levels of Input Validation Controls: Field Interrogation involves programmed procedures that examine characteristics of data in the field. Record Interogation File Interogation