APPLICATION CONTROLS

The processing of transactions involves three stages:

◦ Input stage. This stage involves obtaining relevant data.

◦ Processing stage. This stage involves converting the mass of data into useful in formation.

◦ Output stage. This stage includes preparation of the information in a form useful to those

who wish to use it for decision making.

Application controls are policies and procedures are established to ensure that all transactions

are authorized, and that the transactions are processed completely, accurately, and on a timely basis.

Application controls include:

Input Controls

These controls are incorporated to ensure that the data submitted for processing are

complete, properly authorized, and accurately translated. Some input controls are:

▪ Key Verification

This requires the data to be entered twice to ensure that there are no key entry errors

committed.

▪ Field Check

This is to ensure that the data entered agree with the required field format.

▪ Validity Check

Data entered are compared with valid information in the master file to determine the

authenticity of the input data.

▪ Self-checking Digit

This is a mathematically calculated digit which is usually added to a document number

to detect common transpositional errors in data submitted for processing.

▪ Limit Check

Also called reasonable check used to ensure that data do not exceed a pre-determined

limit or a reasonable amount.

▪ Control Totals

These are totals computed based on the data to ensure the completeness of the data

before and after data processing. These controls include financial totals, hash totals and

Page 1

record counts.

Processing Controls

These controls are designed to provide reasonable assurance that input data are

processed accurately, and that data are not lost, added, exchanged, missed, duplicated or

improperly changed.

Output Controls

These controls are designed to provide reasonable assurance that the results of

processing are complete, accurate and that the outputs are distributed only to authorized

personnel.

Page 2