APPLICATION CONTROLS

Pertains to the transaction

processing systems.
Objectives: To detect, prevent and
correct errors and irregularities in
transactions that are processed in an IT
environment
Kinds of Application of Control

•Input Controls
•Processing Controls
•Output Controls
INPUT CONTROLS
Attempt to ensure the validity,
accuracy and completeness of the
data entered into the system.
Four categories of input
controls:
•Data Observation
•Data Recording
•Data Transcription
•Programmed (Source Program) edit
checks
DATA OBSERVATION AND
RECORDING
Involves visual review of source
documents.
DATA TRANSCRIPTION
•Involves key encoding machine
specification especially the critical
fields and preparation of data for
computerized processing.
PROGRAMMED (SOURCE
PROGRAM) EDIT CHECKS

are basic types of checks

include routines for examining
record files.
These includes:
•Control batch or proof totals
•Completeness checks
•Hash total
•Limit Checks
•Logical check
•Self-checking digit
•Record count
•Sequence check
•Validity check
•Reasonableness check
Control procedures that should
be followed in the preparation
of input data
PROCESSING CONTROLS
Focus on manipulation of
accounting data after they are input
to the system.
It includes:

a.) FILE LABELS

b.) TRAILER LABELS
c.) SEQUENCE TRAILS
d.) TROOF TRAILS
e.) CROSS-FOOTING TESTS
f.) EXCEPTION LISTINGS
g.) TRANSMITTAL RECORDS
h.)
i.) CONSOLE MESSAGES